Rocky and Charlie Form RC Partnership as Equal Partners

question 43

Multiple Choice

Rocky and Charlie form RC Partnership as equal partners.Rocky contributes $100,000 into RC while Charlie contributes real estate with a cost and fair market value of $100,000.During the current year,RC earned net income of $600,000.The partnership distributes $200,000 to each partner.The amount that Rocky should report on his individual tax return is

• A)$0.
• B)$100,000.
• C)$200,000.
• D)$300,000.

---

Definitions:

Law of Diminishing Returns

The economic principle stating that as more units of a factor of production are incrementally added, the additional output from those units will eventually decrease.

Tenth Hour of Study

A concept in educational psychology indicating the diminishing returns of productivity or learning efficiency after prolonged periods of study.

Productive

Refers to the efficiency and effectiveness with which inputs are transformed into outputs, often measured by the rate of output per unit of input.

Internet News

News and information distributed and accessed through the internet, encompassing a wide range of digital platforms.