Janice Has a 30% Interest in the Jansen Partnership

question 11

Essay

Janice has a 30% interest in the Jansen Partnership. She is to receive a guaranteed payment for deductible services of $50,000. The partnership reports $30,000 of ordinary income and a $100,000 long-term capital gain before deducting the guaranteed payment. What is her income from the partnership?

---

Definitions:

Central Pacific Railroad

A key part of the transcontinental railroad in the United States, completed in the 1860s, linking the West Coast at San Francisco Bay with the existing Eastern U.S. rail network.

Federal Government

The national government of the United States, created by the Constitution, that encompasses a system of governmental institutions and practices.

Emancipation Proclamation

A presidential decree by Abraham Lincoln in 1863, declaring the freedom of all enslaved persons in Confederate-held territory during the American Civil War.

Unconstitutional

Actions or laws that are not in accordance with the constitution and therefore illegal and invalid.