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

question 95

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: 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:

Ventricular Fibrillation

A life-threatening heart rhythm disorder characterized by rapid, irregular electrical impulses in the ventricles, leading to inefficient heart muscle contractions.

Cardiac Arrest

A sudden loss of heart function, leading to a loss of blood circulation and consciousness.

Survival

The act or process of living or continuing longer than another person, thing, or event; especially under harsh or challenging circumstances.

Vein

A blood vessel carrying blood toward the heart after receiving it from a venule.