Alex,Ellen and Nicolas Are Equal Partners in a Local Restaurant

question 52

Multiple Choice

Alex,Ellen and Nicolas are equal partners in a local restaurant.The restaurant reports the following items for the current year: Each partner receives a Schedule K-1 with one-third 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; $50,000 investment expense on Schedule A
• B) $257,667 income on Schedule E; $50,000 investment expense on Schedule A
• C) $300,000 income on Schedule E; $50,000 investment expense on Schedule A
• D) $300,000 income on Schedule E; $150,000 investment expense on Schedule A

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Definitions:

Radioactive Radium

A naturally occurring radioactive metal that is part of the uranium decay series, used in various medical and industrial applications.

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Earthquake Intensity

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A measure of the acidity or alkalinity of a solution, denoted by pH, which corresponds to the negative logarithm of the concentration of hydrogen ions in the solution.