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

question 98

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 ordinary income to its partners?

• A)$5,000
• B)$17,000
• C)$20,000
• D)$22,000

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Definitions:

Narrow

Limited in breadth, scope, or extent; often referring to a specific or specialized focus in various contexts.

Centralized

This term refers to a system where decision-making authority is concentrated at a single point or in a single group within the organization.

Traditional Principles

Basic tenets or rules that have been established over time, guiding actions and beliefs in various contexts.

Promotional Programs

Marketing strategies designed to inform, persuade, or remind target audiences about a product or service to increase awareness or sales.