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

question 50

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.

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Definitions:

Wilhelm Wundt

Recognized as the father of experimental psychology, he established the first psychology laboratory in Leipzig, Germany, in 1879, marking the beginning of psychology as a separate field of study.

Sigmund Freud

Originating from Austria, this neurologist created psychoanalysis, a therapeutic approach to address mental illness via conversation with a psychoanalyst.

Psychology

The scientific study of the mind and behavior, exploring various aspects from biological foundations to social influences.

Study of Consciousness

The examination of the nature and properties of the state of being aware of and able to think about oneself and the environment.