Kristie Is a 30% Partner in the KKM Partnership

question 107

Multiple Choice

Kristie is a 30% partner in the KKM Partnership. During the current year, KKM reported gross receipts of $280,000 and a charitable contribution of $30,000. The partnership paid office expenses of $80,000. In addition, KKM distributed $20,000 each to partners Kaylyn and Megan, and the partnership paid partner Kaylyn $20,000 for administrative services. Kristie reports the following income from KKM during the current tax year:

• A)$54,000 ordinary income; $9,000 charitable contribution.
• B)$60,000 ordinary income; $9,000 charitable contribution.
• C)$36,000 ordinary income.
• D)$54,000 ordinary income.
• E)None of the above.

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Definitions:

Alcoholism

A chronic disease characterized by uncontrolled drinking and preoccupation with alcohol, leading to physical, emotional, and societal problems.

Negative Transference

A phenomenon in psychotherapy where the patient projects feelings of deep-seated anger, fear, or mistrust onto the therapist, rooted in previous experiences.

Behavioral Contracting

A therapeutic technique involving an agreement between parties to reinforce desired behaviors.

Aversive Conditioning

A behavioral training method where an association is made between a stimulus and a discomforting or unpleasant reaction.