Identify Which of the Following Statements Is True

question 15

Multiple Choice

Identify which of the following statements is true.

• A)A partner's distributive share includes the full amount of partnership ordinary income, which she must report on her tax return plus her share of separately stated taxable and tax-exempt items.
• B)Sam has a 20% interest in partnership capital and profits but a 40% interest in partnership losses. The partnership has no special allocations or precontribution gains or losses. In a year in which the partnership reports ordinary income of $100,000 and a capital loss of $30,000, Sam's distributive share is $20,000 ordinary income and $12,000 capital loss.
• C)The partner's distributive share is the partner's share of any assets distributed by the partnership.
• D)All of the above are false.