In January of This Year, Arkeva, a Calendar- Year Taxpayer

question 21

Multiple Choice

In January of this year, Arkeva, a calendar- year taxpayer, receives a $50,000 guaranteed payment from NFR Partnership. NFR deducted the payment during its tax year ending November 30 of last year. What tax year must Arkeva report her guaranteed payment in?

• A) She may elect either year.
• B) current year
• C) last year
• D) She does not need to report guaranteed payments on her return.

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Definitions:

Reportable

Pertains to information or actions that need to be disclosed officially, usually due to regulatory requirements.

Reportable Segments

Parts of a business that are distinguishable by their operations, products, or services and are subject to review by the company's chief operating decision maker.

Tests Applied

Specific criteria or procedures used to evaluate or assess particular conditions, standards, or compliance in various contexts.

Third-Quarter Income Statement

A financial report summarizing a company's revenues, expenses, and net income for the third quarter of its fiscal year.