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

question 51

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

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Professional Codes of Ethics

Sets of guidelines designed to outline acceptable behaviors and decision-making processes for professionals within specific industries.