Nate Is a Partner in a Partnership That Received $5,000

question 35

Multiple Choice

Nate is a partner in a partnership that received $5,000 of interest income this year. Nate's share of the interest is $1,000, and he should report this income on his individual return as:

• A)business income
• B)income from a partnership
• C)interest income
• D)dividend income because the partnership intends to organize next year as a limited liability company
• E)None of the above

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Definitions:

Surplus

The situation in which the quantity of goods or services supplied exceeds the quantity demanded at the current price.

Quantity Supplied

the amount of a good or service that producers are willing and able to sell at a given price over a specific period.

Quantity Demanded

The aggregate sum of a product or service that buyers are prepared to buy at a determined price point, at a certain moment.

Surplus

The situation in which the quantity of goods produced exceeds the quantity demanded, often leading to a drop in prices.