The XYZ Partnership Reports the Following Operating Results for the Current

question 34

Multiple Choice

The XYZ Partnership reports the following operating results for the current year: $$\begin{array} { | l | r | } \hline \text { Net long-term capital loss } & ( \$ 40,000 ) \\\hline \text { Net Sec. 1231 loss } & ( 16,000 ) \\\hline \text { Ordinary income } & 50,000 \\\hline\end{array}$$ Tai has a 20% profits interest and a 25% loss interest in the XYZ Partnership.His distributive share of ordinary income is

• A)$6,800.
• B)$8,500.
• C)$10,000.
• D)$12,500.

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Definitions:

Insurance Contracts

Agreements between an insurer and the insured, where the insurer agrees to compensate the insured for loss under specific circumstances in exchange for a premium.

Fire and Theft

Refers to a type of insurance coverage that protects against the specific losses of fire damage and theft.

Victims

Individuals who suffer harm as a result of criminal activity, negligence, or another wrongful action.

Last Clear Chance Doctrine

A largely outdated principle of torts that the last person capable of avoiding the accident is wholly responsible.