On January 2 of the Current Year, Calloway and Taylor

question 44

Multiple Choice

On January 2 of the current year, Calloway and Taylor contribute cash equally to form the CT Partnership. Calloway and Taylor share profits and losses in a ratio of 75% and 25%, respectively. The partnership's ordinary income for the year was $40,000. Calloway received a distribution of $5,000 during the year. What is Calloway's share of taxable income for the year?

• A) $20,000
• B) $10,000
• C) $30,000
• D) $5,000

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Definitions:

Organizational Socialization

The process by which new employees acquire the necessary knowledge, skills, and behaviors to become effective organizational members and insiders.

Accepted Insiders

Individuals or groups within an organization or community who are recognized and welcomed due to their status, contribution, or involvement.

Outsiders

Individuals who are not part of a specific group or organization, often viewed from the perspective of those within the group.

Effectiveness

The degree to which something is successful in producing a desired result or outcome.