Yee Manages Huang Real Estate,a Partnership in Which She Is

question 58

Multiple Choice

Yee manages Huang real estate,a partnership in which she is also a partner.She receives 40% of all partnership income before guaranteed payments,but no less than $80,000 per year.In the current year,the partnership reports $100,000 in ordinary income.What is Yee's distributive share and her guaranteed payment?

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Definitions:

Special Agents

Individuals authorized to conduct specific acts or transactions on behalf of another person or entity, with their authority typically limited to a particular or singular task.

Gratuitous Agents

Individuals who voluntarily act on behalf of someone else without receiving any compensation in return.

Capacity

The legal ability or competency of an individual or entity to enter into binding contracts, including being of legal age and sound mind.

Delegable Obligations

Responsibilities or duties that can be transferred from one party to another, typically within a contract or legal agreement.