Samuel Is the Managing General Partner of STU in Which

question 69

Multiple Choice

Samuel is the managing general partner of STU in which he owns a 25% interest. For the year, STU reported ordinary income of $400,000 (after deducting all guaranteed payments) . In addition, the LLC reported interest income of $12,000. Samuel received a guaranteed payment of $120,000 for services he performed for STU. How much income from self-employment did Samuel earn from STU?

• A) $100,000
• B) $120,000
• C) $220,000
• D) $223,000

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Definitions:

Soybeans

A type of edible legume that is widely cultivated for its nutrient-rich seeds and oil.

Alfalfa

A perennial flowering plant widely cultivated as fodder for livestock due to its high protein content and essential nutrients.

Opportunity Cost

The cost of foregone alternatives; the value of the best alternative that is given up as a result of making a decision.

Alfalfa

A perennial flowering plant often used as fodder for livestock, particularly rich in nutrients.