Kristie Is a 30% Partner in the KKM Partnership

question 109

Multiple Choice

Kristie is a 30% partner in the KKM Partnership.During the current year,KKM reported gross receipts of $280,000 and a charitable contribution of $30,000.The partnership paid office expenses of $80,000.In addition,KKM distributed $20,000 each to partners Kaylyn and Megan,and the partnership paid partner Kaylyn $20,000 for administrative services.Kristie reports the following income from KKM during the current tax year:

• A)$54,000 ordinary income; $9,000 charitable contribution.
• B)$60,000 ordinary income; $9,000 charitable contribution.
• C)$36,000 ordinary income.
• D)$54,000 ordinary income.