The XYZ Partnership Reports the Following Operating Results for the Current

question 47

Multiple Choice

The XYZ Partnership reports the following operating results for the current year: $$\begin{array} { | l | r| } \hline \text { Net long-term capital loss } & ( \$ 40,000 ) \\\hline \text { Net Sec. } 1231 \text { loss } & ( 16,000 ) \\\hline \text { Ordinary income } & 50,000 \\\hline\end{array}$$ Tai has a 20% profits interest and a 25% loss interest in the XYZ Partnership. His distributive share of ordinary income is

• A) $6,800.
• B) $8,500.
• C) $10,000.
• D) $12,500.

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Definitions:

Extrinsic Motivation

A form of motivation driven by external rewards, such as money, fame, grades, and praise.

Intrinsic Motivation

The drive to act based on internal rewards, such as personal satisfaction or the pleasure of doing something.

Homeostasis

The tendency of a biological system to maintain stable internal conditions despite external changes.

Drive Theory

A psychological theory that posits that behavior is motivated by the desire to meet basic physiological needs.