Molly Is a 30% Partner in the MAP Partnership

question 35

Multiple Choice

Molly is a 30% partner in the MAP Partnership.During the current tax year,the partnership reported ordinary income of $200,000 before payment of guaranteed payments and distributions to partners.The partnership made an ordinary cash distribution of $20,000 to Molly,and paid guaranteed payments to partners Molly,Amber,and Pat of $20,000 each ($60,000 total guaranteed payments) .How much will Molly's adjusted gross income increase as a result of the above items?

• A)$42,000
• B)$60,000
• C)$62,000
• D)$80,000

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Definitions:

Learned Helplessness Model

A psychological condition in which individuals believe they have no control over their circumstances, leading them to accept and endure negative situations.

Pessimistic Attributions

The tendency to explain negative events or situations as being due to stable, global, and internal factors, often contributing to feelings of helplessness and depression.

Self-Presentation Theory

A theory suggesting that individuals adjust their behavior and appearance to create specific impressions in the minds of others.

Social Anxiety

A chronic mental health condition characterized by an intense, persistent fear of being watched and judged by others in social situations.