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.

Recognize correct accounting treatments for capital assets, including capitalization, amortization, and exemption conditions.

Understand the criteria for recording bequests and donations and their impact on financial statements.

Identify the different financial statements required by not-for-profit organizations and the unique components of each.

Understand the implications of exceeding the revenue threshold of $500,000 for NFPOs on capital asset reporting.

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Definitions:

Systematic Risk

The danger that affects the whole market or a specific section of the market, referred to as market risk, which diversification cannot mitigate.