Martin and Joe Are Equal Partners in Ferrell Company In Addition to His Ferrell Company Earnings,Martin Has Other Income

question 58

Multiple Choice

Martin and Joe are equal partners in Ferrell Company.For the current year,Ferrell Company reports the following items of income and expense:
$\begin{array}{lr}\text { Sales revenues } & \$ 500,000 \\\text { Long-term capital gains } & 14,000 \\\text { Short-term capital losses } & (10,000) \\\text { Trade and business expenses } & (200,000) \\\text { Limited partnership loss } & (50,000) \\\text { Taxable income } & \$ 254,000\end{array}$
In addition to his Ferrell Company earnings,Martin has other income of $35,000.Included in the $35,000 is a $10,000 loss from the sale of land held as an investment.Martin's adjusted gross income is:

• A)$162,000
• B)$167,000
• C)$172,000
• D)$187,000
• E)$192,000

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Definitions:

Collagen

The primary structural protein found in skin and other connective tissues, widely known for providing strength and elasticity.

Elastic

A property of materials that allows them to resume their normal shape after being stretched or compressed.

Adipocyte

Fat cell.

Lipids

A diverse group of organic compounds, including fats, oils, and hormones, that are insoluble in water but soluble in organic solvents, playing key roles in energy storage and cell structure.