Julian and Tanya Each Contribute $50,000 Cash to Form the M&T

question 89

Multiple Choice

Julian and Tanya each contribute $50,000 cash to form the M&T Partnership on January 4,2013.Julian and Tanya share profits and losses in the ratio of 60% and 40%,respectively.During 2013,the partnership generates ordinary income of $80,000.A cash distribution of $5,000 is made to Julian in December 2013.How much income must Julian recognize from the partnership in 2013?

• A)$ 5,000
• B)$32,000
• C)$45,000
• D)$48,000
• E)$53,000

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Definitions:

Unit Elasticity

A situation where a percentage change in price leads to an equal percentage change in quantity demanded or supplied.

Graph

A visual representation of data, relationships, or functions, typically using lines, bars, or points, to simplify the understanding and analysis of complex information.

Elasticity

A measure of how much the quantity demanded or supplied of a good changes in response to changes in its price or other factors.

Demand

The desire and ability of consumers to purchase goods and services at given prices over a specific time period, reflecting their willingness to pay.