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

question 138

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 choices are correct.