Samuel Is the Managing General Partner of STU, in Which

question 103

Multiple Choice

Samuel is the managing general partner of STU, in which he owns a 25% interest. For the year, STU reported ordinary income of $400,000 (after deducting all guaranteed payments) . In addition, the LLC reported interest income of $12,000. Samuel received a guaranteed payment of $120,000 for services he performed for STU. How much income from self-employment did Samuel earn from STU?

• A)$100,000
• B)$120,000
• C)$220,000
• D)$223,000
• E)None of the above

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Definitions:

Student Nonviolent Coordinating Committee

A civil rights organization founded in 1960 that played a major role in the civil rights movement, advocating for justice and equality through nonviolent protest.

Freedom Summer

A volunteer campaign in the United States during the summer of 1964 aiming to register as many African-American voters as possible in Mississippi, known for its resistance to civil rights.

Mississippi

A U.S. state located in the southeastern region of the country, known for its history, cultural heritage, and significant role in the American Civil Rights Movement.

Black Protest Organization

Groups focused on advocating for the rights and well-being of Black individuals, often through demonstrations, advocacy, and public engagement.