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.

---

Definitions:

Butterfly system

A type of intravenous needle or system known for its small, winged design, allowing for easier, more stable access to veins.

Small veins

Blood vessels that carry blood toward the heart from the tissues; smaller than arteries and larger than capillaries.

Fragile veins

Veins that are easily damaged or bruised, often posing a challenge for medical procedures such as blood draws or IV insertions.

Automatic puncturing device

A tool designed to automatically puncture or penetrate the skin for purposes such as drawing blood or administering medication.