Wayne Owns a 30% Interest in the Capital and Profits

question 103

Multiple Choice

Wayne owns a 30% interest in the capital and profits of Emerald Company (a calendar year partnership) .For tax year 2016,the partnership earned revenue of $900,000 and had operating expenses of $660,000.During the year,Wayne withdrew from the partnership a total of $90,000.He also invested an additional $30,000 in the partnership.For 2016,Wayne's gross income from the partnership is:

• A)$72,000.
• B)$90,000.
• C)$132,000.
• D)$162,000.
• E)None of these.

---

Definitions:

Basal Cells

Cells found at the base of the epidermis and hair follicles, responsible for generating new skin cells and hair.

Olfactory Epithelium

The specialized tissue in the nasal cavity responsible for detecting odors.

Rods

Photoreceptor cells in the retina of the eye that are highly sensitive to light, making them crucial for vision in low light conditions.

Dim Light

Low-level lighting that is not bright or glaring.