The WE Partnership Reports the Following Items for Its Current

question 59

Essay

The WE Partnership reports the following items for its current tax year: $\begin{array}{lr}\text { Item }&\text { Amount }\\\text { Income }\\\text { Operating income }&\$90,000\\\text { Rental income }&15,000\\\text { Interest income: }\\\text { Tax- exempt municipal bonds } & 2,000 \\\text { Corporate bonds } & 4,000 \\\text { Sec. } 1231 \text { gain } & 20,000 \\\text { Sec. } 1245 \text { gain } & 18,000 \\\text { Long- term capital gain } & 7,000\\\\\text { Expenses }\\\text { Rental expenses } & 12,000 \\\text { Salaries paid to employees (not partners) } & 30,000 \\\text { Charitable contributions } & 5,000 \\\text { Interest paid related to borrowings used to finance municipal bonds } & 3,000\end{array}$ What is the WE Partnership's ordinary income for the current year?

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Definitions:

Millions

A numerical unit representing one thousand thousands, or 1,000,000.

Cytoplasm

The jelly-like substance inside cells that contains organelles and is enclosed by the cell membrane.

Protein Synthesis

The biological process by which cells build proteins based on the genetic instructions encoded in DNA.

Genetic Information

Data about an individual's genes and chromosomal setup, including traits inherited from parents.