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:

Direct Materials

Raw materials that can be directly attributed to the production of a product, and are an integral part of the finished product.

Material A

This appears to be a placeholder term and may refer to a specific type of raw material or a key component used in manufacturing or production processes.

Material B

This term could refer to a secondary or alternative material used in manufacturing or production processes.

Pounds

A unit of weight measurement commonly used in Britain and the United States, equal to 0.453592 kilograms.