The WE Partnership Reports the Following Items for Its Current $\begin{array} { l } \text { Item}& \text {Amount }\\\end{array}$

question 39

Essay

The WE Partnership reports the following items for its current tax year:
$\begin{array} { l } \text { Item}& \text {Amount }\\\end{array}$
Income
$\begin{array} { l } \text {perating income }&\$90,000\\ \text {Rental income }&15,000\\\end{array}$
Interest income:
$\begin{array} { l } \text { Tax-exempt municipal bonds }&2,000\\ \text {Corporate bonds }&4,000\\ \text {Sec. 1231 gain }&20,000\\ \text {Sec. 1245 gain }&18,000\\ \text { Long-term capital gain}&7,000\\\end{array}$
Expenses
$\begin{array} { l } \text {Rental expenses }&12,000\\ \text {Salaries paid to employees (not partners) }&30,000\\ \text {Charitable contributions }&5,000\\ \text { Interest paid related to borrowings used to finance municipal bonds}&3,000\\\end{array}$
What is the WE Partnership's ordinary income for the current year?

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Definitions:

Dominant Attitude

The prevailing or most common attitude or outlook among a group or in an individual’s personality, often influencing behavior and perceptions.

Personal Unconscious

The reservoir of material that was once conscious but has been forgotten or suppressed. Personal-document technique.

Social Factors

The aspects of society that influence an individual's life choices, behaviors, and well-being, including family, culture, education, and economic conditions.

Human Nature

The intrinsic characteristics, behaviors, and motivations that are considered inherent in all human beings.