Wayne Owns a 30% Interest in the Capital and Profits

question 105

Multiple Choice

Wayne owns a 30% interest in the capital and profits of Emerald Company (a calendar year partnership) .For tax year 2013,the partnership earned revenue of $900,000 and had operating expenses of $660,000.During the year,Wayne withdrew from the partnership a total of $90,000.He also invested an additional $30,000 in the partnership.For 2013,Wayne's gross income from the partnership is:

• A)$72,000.
• B)$90,000.
• C)$132,000.
• D)$162,000.
• E)None of these.

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Definitions:

P Chart

A type of control chart used for monitoring the proportion of defective items in a process over time.

Upper and Lower Control Limits

Defined in quality control, these are the thresholds set for process performance monitoring to signal when a process is out of control.

Sample Proportion

The fraction or percentage of the sample that reflects a particular trait or attribute of interest.

Central Limit Theorem

A statistical theory that states that, given a sufficiently large sample size from a population with a finite level of variance, the mean of all samples from the same population will be approximately equal to the mean of the population.