Matt and Joel Are Equal Partners in the MJ Partnership

question 110

Multiple Choice

Matt and Joel are equal partners in the MJ Partnership. For the current year ended December 31, the partnership has book income of $80,000, which includes the following deductions: (1) guaranteed payments (salaries) to partners: Matt, $35,000; and Joel, $25,000; and (2) charitable contributions, $6,000. The book income amount does not include any sales of capital assets or Sec. 1231 assets or any tax-exempt income. Based on the above information, what amount should be reported as ordinary income on the partnership return?

• A)$60,000
• B)$80,000
• C)$86,000
• D)$140,000

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Definitions:

Main Circuit Board

The main circuit board, often called a motherboard, is the primary printed circuit board (PCB) in computers and other electronic devices, hosting the central processing unit and providing connectors for other peripherals.

Computer

Any of a number of different types of electronic processing devices with a CPU, input circuit, data retention, and output switching.

Motherboard

The main printed circuit board in a computer that interconnects the central processing unit (CPU), memory, and other components.

Generic ESTs

A term that could refer to generic Electronic Service Tools, which are software applications used for diagnostics and programming of electronic systems in vehicles or machinery.