MN Partnership Has Two Equal Partners, Mark and Nadia

question 832

Essay

MN Partnership has two equal partners, Mark and Nadia. In the current year, the MN earns $140,000 of ordinary business income and a $30,000 long- term capital gain. Nadia is single. In addition to the partnership items, she reports $40,000 of dividend income and a long- term capital loss of $13,000 from her personal investment accounts. Nadia does not itemize her deductions. Calculate Nadia's 2018 taxable income.

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Definitions:

Payable

Refers to an amount of money that a company owes to its creditors or suppliers, to be paid at a later date.

Accounts Receivable

Money owed to a business by its customers for goods or services delivered on credit.

Indirect Method

Indirect Method is a way of reporting cash flows from operating activities in the cash flow statement by starting with net income and adjusting for non-cash transactions and changes in working capital.

Operating Activities

Activities that involve the primary, day-to-day operations of a business, such as sales, supply chain management, and general administrative tasks.