Which of the Following Would Be Currently Taxable as Ordinary

question 5

Multiple Choice

Which of the following would be currently taxable as ordinary income to the service partner if received in exchange for services performed for the partnership? (In all cases, assume the interest is not sold within two years after the time it is granted to the service partner.)

• A)A 10% interest in the capital of the partnership that will vest in 3 years.
• B)A 20% interest in the future profits of the partnership received in exchange for future services to be performed for the partnership.
• C)A 25% interest in the capital of the partnership where there are no restrictions on transferability of the interest.
• D)A 30% interest in ongoing profits of the partnership where the partnership is not a publicly-traded partnership and the income stream is not assured.
• E)All of the above.

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Definitions:

Scapegoat Theory

A social-psychological concept that suggests individuals or groups are blamed and punished for problems or issues, often unfairly, to alleviate feelings of guilt or responsibility in others.

Racist Ideologies

Systems of beliefs that assert the superiority of one race over another, often used to justify unequal treatment or discrimination.

Social Stability

A state in which a society experiences consistent functioning, low levels of social unrest, and predictability in social relationships.

Charter Groups

The French and the English in Canada; Porter recognized the important role these groups played in Canadian history and contemporary social and political development.