The STU Partnership, an Electing Large Partnership, Has No Passive

question 98

Multiple Choice

The STU Partnership, an electing Large Partnership, has no passive activities and reports the following transactions for the year: net long-term capital losses $50,000, Sec. 1231 gain $60,000, ordinary income $20,000, charitable contributions $15,000, and tax-exempt income $2,000. How much will be reported as ordinary income to its partners?

• A)$5,000
• B)$17,000
• C)$20,000
• D)$22,000

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Definitions:

Most Acidic

A term used to describe the substance within a set of compounds that exhibits the highest propensity to donate a proton (H+).

Crossed Claisen Condensation

A reaction involving the condensation of two different esters or an ester and a carbonyl compound in the presence of a strong base, producing a β-keto ester or a β-diketone.

Methyl Pentanoate

An ester formed from methanol and pentanoic acid, used in flavorings and fragrances.

β-Ketoester

An ester compound containing a ketone group (C=O) at the beta-position relative to the ester group.