Wayne Owns a 30% Interest in the Capital and Profits

question 89

Multiple Choice

Wayne owns a 30% interest in the capital and profits of Emerald Company (a calendar year partnership) . For tax year 2018, the partnership earned revenue of $900,000 and had operating expenses of $660,000. During the year, Wayne withdrew from the partnership a total of $90,000. He also invested an additional $30,000 in the partnership. For 2018, Wayne's gross income from the partnership is:

• A) $72,000.
• B) $90,000.
• C) $132,000.
• D) $162,000.

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Definitions:

Conjunct

An element of a conjunction, which is a compound statement formed by combining two or more statements with the connective "and."

Conjunction

In logic, a compound statement formed by combining two statements with the word "and," requiring both to be true.

Tautology

A statement that is true by necessity or by its logical form, independent of the truth values of its components.

Conjuncts

Parts of a complex sentence or statement, connected by a conjunction, each part contributing to the whole meaning.