On January 2 of the Current Year, Calloway and Taylor

question 44

Multiple Choice

On January 2 of the current year, Calloway and Taylor contribute cash equally to form the CT Partnership. Calloway and Taylor share profits and losses in a ratio of 75% and 25%, respectively. The partnership's ordinary income for the year was $40,000. Calloway received a distribution of $5,000 during the year. What is Calloway's share of taxable income for the year?

• A)$5,000
• B)$10,000
• C)$20,000
• D)$30,000