Matt and Joel Are Equal Partners in the MJ Partnership

question 110

Multiple Choice

Matt and Joel are equal partners in the MJ Partnership. For the current year ended December 31, the partnership has book income of $80,000, which includes the following deductions: (1) guaranteed payments (salaries) to partners: Matt, $35,000; and Joel, $25,000; and (2) charitable contributions, $6,000. The book income amount does not include any sales of capital assets or Sec. 1231 assets or any tax-exempt income. Based on the above information, what amount should be reported as ordinary income on the partnership return?

• A)$60,000
• B)$80,000
• C)$86,000
• D)$140,000

---

Definitions:

Flash Memory

A type of non-volatile storage that can be electronically erased and reprogrammed, used in USB drives, SSDs, and other digital devices.

CPU

Central Processing Unit, the primary component of a computer responsible for interpreting and executing most of the commands from the computer's other hardware and software.

Memory Modules

Physical components that store digital information temporarily or permanently, such as RAM sticks or SSDs.

Expansion Cards

Interface devices that can be added to a computer to provide additional functions such as improved video, sound, or network capabilities.