Meg and Abby Are Equal Partners in the AM Partnership

question 81

Multiple Choice

Meg and Abby are equal partners in the AM Partnership, which earns $40,000 ordinary income, $6,000 long- term capital gain (LTCG) , and $2,000 Sec. 1231 loss during the current year. What is the amount and character of income that must be reported on Abby's tax return for this year's partnership operations?

• A) $20,000 ordinary income, $3,000 LTCG, $1,000 Sec. 1231 loss
• B) $22,000 ordinary income
• C) $23,000 ordinary income, $1,000 Sec. 1231 loss
• D) $19,000 ordinary income, $3,000 LTCG

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Definitions:

Romantic Love

A complex set of emotions and attitudes associated with strong feelings of affection, warmth, and respect for another person, often imbued with a sense of personal attachment and commitment.

Desirability

The quality of being wanted or wished for as being attractive, useful, or necessary.

Mary Wollstonecraft

An 18th-century British writer, philosopher, and advocate of women's rights, best known for her work "A Vindication of the Rights of Woman."

Simone de Beauvoir

A French writer, philosopher, and feminist, known for her work on existentialism and feminism, notably "The Second Sex."