On January 2 of the Current Year, Calloway and Taylor

question 44

Multiple Choice

On January 2 of the current year, Calloway and Taylor contribute cash equally to form the CT Partnership. Calloway and Taylor share profits and losses in a ratio of 75% and 25%, respectively. The partnership's ordinary income for the year was $40,000. Calloway received a distribution of $5,000 during the year. What is Calloway's share of taxable income for the year?

• A)$5,000
• B)$10,000
• C)$20,000
• D)$30,000

---

Definitions:

Behavior

The way in which one acts or conducts oneself, especially towards others, governed by psychological and environmental factors.

Brain Hemisphere

One half of the brain, either the left or the right, each responsible for different functions and cognitive processes.

Visual Field

The total area in which objects can be seen in the peripheral vision while the eye is focused on a central point.

Sex Hormones

Chemical substances produced by the body that regulate sexual development, behavior, and reproduction.