Teresa,Terri,and Tricia Operate Sassy Solutions,an Exclusive Boutique For Tax Purposes,what Amount Will Sassy Solutions Report to Teresa

question 19

Multiple Choice

Teresa,Terri,and Tricia operate Sassy Solutions,an exclusive boutique.Based on advice from Teresa's sister,a CPA,the three form a partnership.Teresa owns 50% and Terri and Tricia each own 25%.For the year,Sassy Solutions reports the following:
$\begin{array}{lr}\text { Sales revenues } & \$ 600,000 \\\text { Business expenses } & (320,000) \\\text { Investment expenses } & (4,000) \\\text { Short-term capital gains } & 26,000 \\\text { Long-term capital losses } & \underline { (14,000) } \\\text { Taxable income } & \underline { \$ 288.000}\end{array}$
For tax purposes,what amount will Sassy Solutions report to Teresa as her ordinary income from the partnership?

• A)$144,000
• B)$146,000
• C)$148,000
• D)$138,000
• E)$140,000

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