Nate Is a Partner in a Partnership That Received $5,000

question 138

Multiple Choice

Nate is a partner in a partnership that received $5,000 of interest income this year. Nate's share of the interest is $1,000, and he should report this income on his individual return as:

• A)business income.
• B)income from a partnership.
• C)interest income.
• D)dividend income because the partnership intends to organize next year as a limited liability company.
• E)None of the choices are correct.

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Definitions:

Androgynous

Describing an individual who blends or possesses both traditionally male and traditionally female characteristics.

Normative

Relating to an ideal standard or model, or based on what is considered to be the normal or correct way of doing something.

Complement

A term used in various contexts, often denoting a thing that completes or goes well with another.

Interests

Activities, subjects, or areas that capture the attention, curiosity, or concern of an individual or group.