Rich Is a Partner in RKW Partnership

question 73

Multiple Choice

Rich is a partner in RKW partnership. Rich owned 50% from January 1, 2015 to April 30, 2015, when he bought Kevin's 25% interest. He owned 75% for the rest of the year (assume a 365-day year) . The partnership had ordinary income of $150,000 and $25,000 in long-term capital gains. Barring any special allocations in a partnership agreement, Rich's share of the income items is:

• A) $75,000 ordinary income; $12,500 capital gain.
• B) $100,172 ordinary income; $16,696 capital gain.
• C) $112,500 ordinary income; $18,750 capital gain.
• D)$150,000 ordinary income; $25,000 capital gain.

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Definitions:

Fromm's Theory

A psychoanalytic theory developed by Erich Fromm that focuses on the human need for freedom and the ways societal structures can impede or foster personal development.

Kelly's Theory

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A sexual orientation characterized by attraction to people of the same sex.

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A societal concept that often refers to stereotypical male behaviors and traits emphasizing strength, stoicism, and dominance.