Styron is a partner in Styron, Lee, & Jane Partnership. Styron owned 25% from January 1, 2017

Question:

Styron is a partner in Styron, Lee, & Jane Partnership. Styron owned 25% from January 1, 2017 to June 30, 2017, when he bought Lee’s 25% interest. He owned 50% for the rest of the year. The partnership had ordinary income of $88,000 and $12,000 in long-term capital gains. Barring any special allocations in a partnership agreement, Styron’s share of ordinary income for the year is:

a. $ 11,000.

b. $ 33,000.

c. $ 88,000.

d. $100,000.

Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Fundamentals Of Taxation 2018

ISBN: 9781259713736

11th Edition

Authors: Ana M. Cruz Dr., Michael Deschamps, Frederick Niswander, Debra Prendergast, Dan Schisler

Question Posted: