The LN Partnership Reported the Following Items of Income and Deduction

question 125

Essay

The LN partnership reported the following items of income and deduction during the current tax year: revenues,$300,000; cost of goods sold,$180,000; tax-exempt interest income,$2,000; salaries to employees,$80,000; and long-term capital gain,$10,000.In addition,the partnership distributed $20,000 of cash to 50% partner Nina and $10,000 of cash to 50% partner Len.What is Nina's share of ordinary partnership income and separately stated items?

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Definitions:

Durbin-Watson Statistic

A measure used to detect the presence of autocorrelation in the residuals from a regression analysis.

Hypotheses Testing

A method in statistics that applies data from a subset to assess assumptions about a broader population's characteristic.

Durbin-Watson Test

A statistical procedure aimed at discovering the presence of autocorrelation at the first lag within the residuals of a regression analysis.

Autocorrelation

A characteristic of data in which sequential measurements or values in a time series are correlated with each other.