Ariel,Bob,Candice and Dmitri Are Equal Partners in a Local Ski

question 1

Multiple Choice

Ariel,Bob,Candice and Dmitri are equal partners in a local ski resort.The resort reports the following items for the current year: Business revenue $ 1,200,000
Business expenses 750,000
Short-term capital gains 107,000
Short-term capital losses 103,000 )
Each partner receives a Schedule K-1 with one-fourth of the preceding items reported to him/her.How must each individual report these results on his/her Form 1040?

• A)$112,500 income on Schedule E; $1,000 short-term capital gain on Schedule D
• B)$1,200,000 income on Schedule E; $107,000 short-term capital gain on Schedule D
• C)$300,000 income on Schedule E; $26,750 short-term capital gain on Schedule D
• D)$100,000 income on Schedule E; $1,000 short-term capital gain on Schedule D

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Definitions:

Occipital Lobes

The region of the brain located at the back of the head, responsible for processing visual information.

Auditory Area

The region of the brain responsible for processing sound information.

Limbic System

A complex system of nerves and networks in the brain, involved in basic emotions such as fear and pleasure, and drives such as those for food and sex.

Amygdala

A part of the brain's limbic system involved in emotion regulation, emotional learning, and the formation of memories associated with emotional events.