A Partner Had the Following Items Reported on a Partnership

question 33

Multiple Choice

A partner had the following items reported on a partnership Schedule K-1: $\begin{array}{lr}\text { Ordinary income (including Section } 1245 \text { recapture of } \$ 5,000 \text { ) }&\$59,000\\\text { Dividend income } & 1,500 \\\text { Guaranteed payment } & 9,000 \\\text { Section 179 expense } & 26,000\end{array}$ The partner's self-employment income for the year equals:

• A)$28,000.
• B)$37,000.
• C)$42,000.
• D)$68,000.

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Definitions:

Occupation

A person's principal work or business, especially as a means of earning a living; a profession or job.

Income

Monetary gain derived from work, investments, or social benefits, serving as a measure of economic well-being and resource availability for individuals or households.

Wealth

is an abundance of valuable financial assets or physical possessions, which can include income, land, and other types of property.

Welfare Policy

Government policies designed to support the welfare of the population through services such as healthcare, education, and financial aid.