Mohamed Khan and Aaron Grieve Are Equal Partners in a Small

question 10

Multiple Choice

Mohamed Khan and Aaron Grieve are equal partners in a small business which received the following income in 2020: business income of $150,000, non-eligible dividends of $4,000, and a capital gain of $10,000.Mohamed withdrew $20,000 from the partnership during 2020 and Aaron withdrew $25,000.Which of the following is correct for the 2020 taxation year?

• A)Mohamed's net income for tax purposes from the business is $59,800 and Aaron's net income for tax purposes is $54,800.
• B)Both partners have a net income for tax purposes from the business of $79,500.
• C)Both partners have a net income for tax purposes from the business of $79,800.
• D)Both partners have a net income for tax purposes from the business of $82,000.

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Definitions:

Counseling Method

A counseling method is a structured approach used by counselors to assist clients in understanding their issues and developing strategies for improvement.

Explicit Goals

Clearly defined and articulated objectives that are understood and agreed upon by all parties involved.

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Broad, overarching objectives that an individual, group, or organization seeks to achieve, often lacking specific timelines or measures.

Rebel

An individual who opposes or resists authority, convention, or societal expectations.