Luisa,Lois,and Lucy Operate a Boutique Named Mariabelle's Dreams What Amount Will Mariabelle's Dreams Report to Luisa as Her

question 59

Multiple Choice

Luisa,Lois,and Lucy operate a boutique named Mariabelle's Dreams.Based on advice from Luisa's sister,an accountant,the three form a partnership.Luisa owns 40% and Lois and Lucy each own 30%.For the year,Mariabelle's Dreams reports the following:
$\begin{array}{lr}\text { Sales revenues } & \$ 300,000 \\\text { Short-term capital gains } & 3,000 \\\text { Short-term capital losses } & (7,000) \\\text { Trade and business expenses } & (160,000) \\\text { Investment expenses } & \underline {(1,000) } \\\text { Taxable income } & \underline {\$ 135,000}\end{array}$
What amount will Mariabelle's Dreams report to Luisa as her ordinary income from the partnership?

• A)$ 54,000
• B)$ 54,400
• C)$ 54,800
• D)$ 55,600
• E)$ 56,000

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Definitions:

Mindfulness

A practice of being fully present and engaged in the moment, aware of one's thoughts and feelings without judgment.

Material Self

An aspect of self-concept that includes the physical items and possessions which reflect one’s identity.

Tangible Things

Physical items or objects that can be seen, touched, and measured, unlike abstract concepts or ideas.

Social

Relating to society or its organization, often focusing on the interactions, structures, and dynamics within human communities.