Ben Is a 30% Partner in a Partnership

question 1

Multiple Choice

Ben is a 30% partner in a partnership.The partnership guarantees Ben payments of $25,000 for the year.If the partnership has ordinary income of $15,000 before adjustment for the guaranteed payment,Ben must report

• A)ordinary income of $22,000.
• B)an ordinary loss of $3,000.
• C)ordinary income of $25,000 and a partnership income of $4,500.
• D)ordinary income of $25,000 and a partnership loss of $3,000.

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Definitions:

Usable Energy

The portion of energy in a system that can be used to perform work or is available to be converted into work.

Thermodynamics

Principles governing energy transfer (often expressed in terms of heat transfer). See first law of thermodynamics and second law of thermodynamics.

Decreases

A reduction in size, amount, extent, or number.

Thermal Energy

The internal energy present in a system due to its temperature, associated with the random motion of molecules.