Rich Is a Partner in RKW Partnership

question 46

Multiple Choice

Rich is a partner in RKW partnership.Rich owned 50% from January 1,2016 to April 30,2016,when he bought Kevin's 25% interest.He owned 75% for the rest of the year assume a 365-day year) .The partnership had ordinary income of $150,000 and $25,000 in long-term capital gains.Barring any special allocations in a partnership agreement,Rich's share of the income items is:

• A)$150,000 ordinary income; $25,000 capital gain.
• B)$75,000 ordinary income; $12,500 capital gain.
• C)$100,172 ordinary income; $16,696 capital gain.
• D)$112,500 ordinary income; $18,750 capital gain.

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Definitions:

Cognitive Distortions

Faulty or biased ways of thinking that are often negative and lead to inaccurate perception of reality.

Behavioral Technique

A method used in psychology to modify behavior through conditioning processes.

Fear of Elevators

An anxiety disorder where individuals experience fear or panic when thinking about or riding in elevators, also known as lift phobia.

Systematic Desensitization

A behavioral therapy technique used to reduce phobic responses and anxiety through gradual exposure to the feared object or situation combined with relaxation exercises.