This Year, Reggie's Distributive Share from Almonte Partnership Includes $8,000

question 44

Essay

This year, Reggie's distributive share from Almonte Partnership includes $8,000 of interest income, $4,000 of dividend income, and $60,000of ordinary business income.
A. Assume that Reggie materially participates in the partnership. How much of his distributive share from Almonte Partnership is potentially subject to the net investment income tax?
B. Assume that Reggie does not materially participate in the partnership. How much of his distributive share from Almonte Partnership is potentially subject to the net investment income tax?

---

Definitions:

Procedural Fairness

Fairness that occurs when the process used to determine work outcomes is seen as reasonable.

Distributive Fairness

The perceived fairness of outcomes distributed within an organization, including resources, rewards, and responsibilities.

Social Loafing

A phenomenon where individuals exert less effort when working in a group than when working alone.

Collectivism

A cultural value that prioritizes group goals over individual goals and fosters strong ties among group members.