In the Current Year,the POD Partnership Received Revenues of $100,000

question 68

Multiple Choice

In the current year,the POD Partnership received revenues of $100,000 and paid the following amounts: $20,000 in rent and utilities,and $10,000 as a distribution to partner Olivia.In addition,the partnership earned $4,000 of qualifying dividend income during the year.Partner Don owns a 50% interest in the partnership.How much income must Don report for the tax year?

• A)$42,000 ordinary income.
• B)$37,000 ordinary income.
• C)$40,000 ordinary income;$2,000 of qualifying dividends.
• D)$35,000 ordinary income;$2,000 of qualifying dividends.
• E)None of the above.

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Definitions:

Standard Deviation

A measure that is used to quantify the amount of variation or dispersion of a set of data values.

Covariance

A measure indicating the extent to which two random variables change together.

Coefficient R

A measure used in statistics to represent the strength and direction of a linear relationship between two variables on a scatter plot.

Variance

A measure of the dispersion of a set of values, indicating how much the values differ from the mean.