Latoya Owns a 10% Interest in the ABC Partnership from January

question 97

Multiple Choice

Latoya owns a 10% interest in the ABC Partnership from January 1 through June 30 (the 181st day of the tax year) of the current year (a non-leap year) . On July 1, Latoya buys an additional 10% interest in the partnership. The XYZ Partnership's ordinary income is $109,500 and it is earned evenly throughout the year. Latoya's distributive share of the ordinary income is

• A)$16,380.
• B)$16,425.
• C)$16,470.
• D)$21,900.

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Definitions:

Games-Of-Chance

Activities in which outcomes are determined primarily by random factors, usually for gambling or entertainment purposes.

Oligopoly Behavior

Market behavior characterized by a small number of firms dominating a market, where each firm's decisions impact the others, often leading to strategic pricing and output decisions.

Sequential Game

A strategic interaction (game) between two or more parties (players) in which each party moves (makes a decision) in a predetermined order (sequence).

Second Mover

A strategy where a firm enters a market or releases a product after competitors have already established themselves, potentially benefiting from the first mover's market insights and errors.