In the Current Year, the POD Partnership Received Revenues of $200,000

question 165

Multiple Choice

In the current year, the POD Partnership received revenues of $200,000 and paid the following amounts: $50,000 in rent and utilities, and $20,000 as a distribution to partner Olivia. In addition, the partnership earned $6,000 of long- term capital gains during the year. Partner Donald owns a 50% interest in the partnership. How much income must Donald report for the tax year?

• A) $68,000 ordinary income.
• B) $78,000 ordinary income.
• C) $65,000 ordinary income? $3,000 of long-term capital gains.
• D) $75,000 ordinary income? $3,000 of long-term capital gains.
• E) None of the above is correct.

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