Donald Owns a 45% Interest in a Partnership That Earned

question 11

True/False

Donald owns a 45% interest in a partnership that earned $130,000 in the current year. He also owns 45% of the stock in a C corporation that earned $130,000 during the year. Donald received $20,000 in distributions from each of the two entities during the year. With respect to this information, Donald must report $78,500 of income on his individual income tax return for the year.

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Definitions:

Retirees

Individuals who have stopped working full-time in their profession, often due to reaching a certain age or completing a certain number of years of service.

Residential Schools

Educational institutions where Indigenous children were removed from their families and communities to assimilate them into the dominant culture, often leading to cultural dislocation and abuse.

First Nations

Indigenous peoples in Canada who are not Inuit or Métis, historically consisting of various distinct tribes and ethnic groups.

Assimilation Policy

A policy encouraging or forcing a group to adopt the culture or norms of a dominant or majority group.