Wayne Owns a 25% Interest in the Capital and Profits

question 36

Multiple Choice

Wayne owns a 25% interest in the capital and profits of Emerald Company (a calendar year partnership) .For tax year 2011,the partnership earned revenue of $600,000 and had operating expenses of $300,000.During the year,Wayne withdrew from the partnership a total of $64,000.He also invested an additional $20,000 in the partnership.For 2011,Wayne's gross income from the partnership is:

• A) $119,000.
• B) $75,000.
• C) $64,000.
• D) $44,000.
• E) None of the above.

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