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:

Inductive

A logical process in which multiple premises, all believed true or found true most of the time, are combined to obtain a specific conclusion.

Independent

The state or quality of being self-reliant and not influenced or controlled by others in terms of one's opinions or conduct.

Task-oriented Activities

Actions or projects focused on achieving a specific goal or completing a particular task.

Single Parent Households

Family units consisting of one parent living with their child or children, without the presence of a partner.