The Partnership of Felix and Oscar Had the Following Items

question 53

Multiple Choice

The partnership of Felix and Oscar had the following items of income during the current tax year: $$\begin{array} { l r } \text { Income from operations } & \$ 157,000 \\\text { Tax-exempt interest income } & 8,000 \\\text { Dividend income } & 6,000\end{array}$$ What is the total ordinary income from business activities passed through by the partnership for the current tax year?

• A)$156,000
• B)$157,000
• C)$165,000
• D)$110,000
• E)None of these

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Definitions:

Production Costs

The total cost incurred by a company to manufacture a product or offer a service, including raw materials, labor, and overhead expenses.

Management

The method of strategizing, structuring, guiding, and managing resources to accomplish particular objectives.

Flexible Budgets

A financial plan that varies in response to changes in the amount of operations or activity.

Constant Costs

Expenses that do not change in proportion to the level of activity or production volume.