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:

Fill Orders

The process of completing customer orders for goods or services.

Manufacturing Cycle Efficiency

a measure of the efficiency of the production process, typically calculated as the ratio of value-added time (the time spent actually transforming the product) to total cycle time.

Fill Orders

The process of completing customer orders by preparing and delivering the specified goods or services.

Throughput Time

The total time taken to complete a process from start to finish, often used in manufacturing to assess efficiency.