The STU Partnership, an Electing Large Partnership, Has No Passive

question 38

Multiple Choice

The STU Partnership, an electing Large Partnership, has no passive activities and reports the following transactions for the year: net long-term capital losses $50,000, Sec. 1231 gain $60,000, ordinary income $20,000, charitable contributions $15,000, and tax-exempt income $2,000. How much will be reported as long-term capital gains to its partners?

• A)$0
• B)$10,000
• C)$50,000
• D)$60,000

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Definitions:

Embryo

An early stage of development in multicellular organisms after fertilization and before becoming a fetus, characterized by rapid cell division and differentiation.

Gamete

Mature, haploid reproductive cell; e.g., a sperm.

Ovary

In flowering plants, the enlarged base of a carpel, inside which one or more ovules form and eggs are fertilized. In animals, the egg-producing gonad.