ABC Co and XYZ Co

question 5

Multiple Choice

ABC Co. and XYZ Co. have entered into a partnership for business purposes. Both companies are CCPCs and they share the profits and losses of the business equally. During the year, the partnership earned $200,000 of active business income, and ABC Co. earned $450,000 in business income from operations other than the partnership. All of the companies have a December 31^st year-end. How much of ABC Co.'s share of the partnership profits will be eligible for the small business deduction (assuming all of the $450,000 is allocated to the deduction) ?

• A) $0
• B) $50,000
• C) $100,000
• D) $200,000

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Definitions:

Outplacement

A support service provided by some organizations to help former employees transition to new jobs, often following layoffs.

Employable

Possessing the skills, qualifications, and attributes that make one a desirable candidate for employment.

Managerial Position

A role within an organization that involves supervising and making decisions for a team or department.

Outplacement Services

Services provided by organizations to help terminated employees find a new job.