Molly Is a 40% Partner in the MAP Partnership

question 49

Multiple Choice

Molly is a 40% partner in the MAP Partnership.During the current tax year, the partnership reported ordinary income of $210,000 before payment of guaranteed payments and distributions to partners.The partnership made an ordinary cash distribution of $30,000 to Molly, and paid guaranteed payments to partners Molly, Amber, and Pat of $30,000 each ($90,000 total) .How much will Molly's adjusted gross income increase as a result of the above items?

• A)$88,000.
• B)$78,000.
• C)$66,000.
• D)$48,000.
• E)None of the above.

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Definitions:

Senior Management

The highest level of management in an organization, responsible for the overall direction and success of the company.

Initiation Of Change

The process of starting to implement actions that will alter the status quo within an organization or system.

Top-Down Change

Organizational change initiatives that are initiated by upper management and imposed on lower levels of the organization, often requiring compliance.

Organizational Structure

Describes how activities such as task allocation, coordination, and supervision are directed towards the achievement of organizational aims.