Wayne Owns a 30% Interest in the Capital and Profits

question 99

Multiple Choice

Wayne owns a 30% interest in the capital and profits of Emerald Company (a calendar year partnership) . For tax year 2017, 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 2017, Wayne's gross income from the partnership is:

• A)$72,000.
• B)$90,000.
• C)$132,000.
• D)$162,000.

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Definitions:

Pharmaceutical Companies

Organizations involved in the discovery, development, manufacturing, and marketing of drugs and medications.

Conflict of Interest

A situation in which a person's or organization's personal interests could potentially influence their professional decisions or actions.

Bipolar Disorder

A psychological disorder characterized by severe fluctuations in mood, encompassing intense emotional peaks (hypomania or mania) and troughs (depression).

Valproate

A medication commonly used to treat seizure disorders and bipolar disorder, and to prevent migraine headaches.