The XYZ Partnership Reports the Following Operating Results for the Current

question 108

Multiple Choice

The XYZ Partnership reports the following operating results for the current year: Tai has a 20% profits interest and a 25% loss interest in the XYZ Partnership.His distributive share of ordinary income is

• A)$6,800.
• B)$8,500.
• C)$10,000.
• D)$12,500.

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Definitions:

ETFs

Exchange-Traded Funds, investment funds that are traded on stock exchanges much like stocks and typically track an index, a commodity, bonds, or a basket of assets.

Russell 2000

An index measuring the performance of approximately 2,000 smallest-cap American companies in the Russell 3000 Index, which represents the entire U.S. stock market.

Diversified Portfolio

A financial approach that diversifies holdings over multiple asset types to mitigate risk.

ETFs

Exchange-Traded Funds, investment funds traded on stock exchanges, much like stocks, which hold assets such as stocks, commodities, or bonds.