Tercot Partnership Reported $1,000,000 of Business Receipts, $700,000 of Business

question 97

Multiple Choice

Tercot Partnership reported $1,000,000 of business receipts, $700,000 of business deductions, and $100,000 of interest income. Terry is a 50% partner in Tercot Partnership. On Terry's return, she will be entitled to a deduction for qualified business income of

• A) $80,000.
• B) $60,000.
• C) $40,000.
• D) $30,000.

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Definitions:

Annual Repayments

are fixed amounts paid back by a borrower to a lender at regular intervals over a year to reduce or settle a loan's principal and interest.

Exchange Gains

A financial outcome resulting from favorable changes in exchange rates, leading to increased value of foreign currency transactions or holdings prior to their conversion to a home currency.

Exchange Rate

The amount one currency is valued at when converting to a different one.

Interest

The charge for the privilege of borrowing money, typically expressed as an annual percentage rate.