Ariel,Bob,Candice and Dmitri Are Equal Partners in a Local Ski

question 46

Multiple Choice

Ariel,Bob,Candice and Dmitri are equal partners in a local ski resort.The resort reports the following items for the current year: $\begin{array}{lr}\text { Business revenue } & \$ 1,200,000 \\\text { Business expenses } & 750,000 \\\text { Short-term capital gains } & 107,000 \\\text { Short-term capital losses } & (103,00 0) \end{array}$ Each partner receives a Schedule K-1 with one-fourth of the preceding items reported to him/her.How must each individual report these results on his/her Form 1040?

• A)$100,000 income on Schedule E;$1,000 short-term capital gain on Schedule D
• B)$112,500 income on Schedule E;$1,000 short-term capital gain on Schedule D
• C)$300,000 income on Schedule E;$26,750 short-term capital gain on Schedule D
• D)$1,200,000 income on Schedule E;$107,000 short-term capital gain on Schedule D

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Definitions:

Collaboration

Working jointly with others or together especially in an intellectual endeavor to achieve a common goal.

Mistrust

Lack of trust or confidence in someone or something, often resulting from experiences or perceptions of deceit or failure.

Interests

The desires, concerns, or needs that individuals or parties aim to address through negotiation or action.

Opening Positions

The initial stances or demands that parties bring to a negotiation, usually expected to undergo adjustments as discussions progress.