BCD Partners Reported the Following Items on the Partnership's Schedule

question 74

Multiple Choice

BCD Partners reported the following items on the partnership's Schedule K: ordinary income, $72,000; interest income, $5,000; long-term capital gain, $8,000; charitable contributions, $3,000; post-1986 depreciation adjustment, $4,000; and cash distributions to partners, $20,000.How much will BCD show as net income (loss) on its Analysis of Income (Loss) ?

• A)$58,000.
• B)$72,000.
• C)$78,000.
• D)$82,000.
• E)$85,000.

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Definitions:

Output Level

The output level refers to the total amount of goods or services produced by an individual, firm, or economy at a given time.

Total Fixed Cost

The sum of all costs that do not change with the level of output, such as rent, salaries, and loan payments.

Cupcake Bakery

A specialized bakery that focuses on baking and selling a variety of cupcakes.

Variable Cost

Costs that change in proportion to the level of goods or services produced by a business.