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?

---

Definitions:

Stages

Various phases or steps in a process or procedure.

Permutations

The arrangement of all or part of a set of objects, with regard to the order of the arrangement. For example, all possible orders in which a set of objects can be arranged.

Deserts

Arid and dry landscapes that receive extremely low amounts of precipitation, making them unlikely to support much life.

Response Combinations

The possible outcomes or sets of responses available in a study or experimental design, often observed in surveys, psychological experiments, or statistical analyses.