Rowan and Sanjay Are Equal Partners in a Partnership,which Uses

question 144

Multiple Choice

Rowan and Sanjay are equal partners in a partnership,which uses the calendar year as its tax year.On September 1,this year,Hailley contributed $60,000 cash for a one-third interest in the partnership.The partnership reports $72,000 of ordinary income for the tax year ending on December 31 of this year.The income allocation to Hailley is (assume the elective proration method with a monthly convention)

• A)$24,000.
• B)$12,000.
• C)$0.
• D)$8,000.

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Definitions:

Blended Family

A family unit where one or both partners have children from previous relationships, blending families together.

Custodial Parent

The parent awarded the majority of time and responsibility for a child by a court of law following a separation or divorce.

Stepparent

An individual who is married to a person with children from a previous relationship and who may take on parental responsibilities for those children.

Emotional Outbursts

Sudden, intense expressions of emotion, such as anger or frustration, that can be difficult to control.