Alex,Ellen and Nicolas Are Equal Partners in a Local Restaurant

question 62

Multiple Choice

Alex,Ellen and Nicolas are equal partners in a local restaurant.The restaurant reports the following items for the current year: Each partner receives a Schedule K-1 with one-third of the preceding items reported to him/her.How must each individual report these results on his/her Form 1040?

• A)$100,000 income on Schedule E; $50,000 investment expense on Schedule A
• B)$300,000 income on Schedule E; $150,000 investment expense on Schedule A
• C)$300,000 income on Schedule E; $50,000 investment expense on Schedule A
• D)$257,667 income on Schedule E; $50,000 investment expense on Schedule A

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Definitions:

ECG

A test that records the electrical activity of the heart to diagnose heart conditions.

Color Code

A system for displaying information by using different colors for easy recognition and classification.

Electrode

A conductor through which electricity enters or leaves an object, substance, or region in electrical systems or devices.

ECG

An abbreviation for Electrocardiogram, a medical test that measures the electrical activity of the heart to assess its health and detect any abnormalities.