Donald Owns a 45% Interest in a Partnership That Earned

question 11

True/False

Donald owns a 45% interest in a partnership that earned $130,000 in the current year. He also owns 45% of the stock in a C corporation that earned $130,000 during the year. Donald received $20,000 in distributions from each of the two entities during the year. With respect to this information, Donald must report $78,500 of income on his individual income tax return for the year.

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Definitions:

Beak Sizes

Variations in the length, width, and shape of the beaks of birds, often correlating with their feeding habits and ecological niches.

Indicator Species

Organisms used to assess the health of an ecosystem because their presence, absence, or abundance reflects a specific environmental condition.

Environmental Degradation

The deterioration of the environment through depletion of resources, destruction of ecosystems, and the extinction of wildlife.