The STU Partnership, an Electing Large Partnership, Has No Passive

question 98

Multiple Choice

The STU Partnership, an electing Large Partnership, has no passive activities and reports the following transactions for the year: net long-term capital losses $50,000, Sec. 1231 gain $60,000, ordinary income $20,000, charitable contributions $15,000, and tax-exempt income $2,000. How much will be reported as ordinary income to its partners?

• A)$5,000
• B)$17,000
• C)$20,000
• D)$22,000

---

Definitions:

Need For Cognition

A psychological trait representing an individual's tendency to engage in and enjoy effortful cognitive activities.

Low-Ball Technique

A persuasive strategy where an initial, lower-than-actual price is offered to secure agreement, only to raise it later on.

Advance Notice

A warning or notification given in advance to prepare for or prevent something from happening.

Stockpiled Resources

Accumulated materials or assets kept in reserve for future use or during emergencies.