Cornell and Joe Are Equal Partners in Jones Company

question 31

Multiple Choice

Cornell and Joe are equal partners in Jones Company. For the current year, Jones reports the following items of income and expense: In addition to his Jones earnings, Joe has other net taxable income of $45,000. Included in the $45,000 is $10,000 in income from a passive activity. Joe's income is:

• A) $152,000
• B) $157,000
• C) $162,000
• D) $167,000
• E) $182,000