On December 31 of last year, Rachel gave her daughter, Courtney, a gift of a 25% interest
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Question:
On December 31 of last year, Rachel gave her daughter, Courtney, a gift of a 25% interest in a partnership in which capital is a material income-producing factor. For the current calendar year, the partnership's ordinary income was $200,000. Rachel and Courtney were the only partners, and there were no guaranteed payments. Rachel's services performed for the partnership were worth $40,000, and Courtney has never performed any services. What is Courtney's distributive share of partnership income for the current year?
A- $100,000
B- $80,000
C- $50,000
D- $40,000.
E- None of the above.
Related Book For
Federal Taxation 2021 Corporations, Partnerships, Estates & Trusts
ISBN: 9780135919460
34th Edition
Authors: Timothy J. Rupert, Kenneth E. Anderson, David S. Hulse
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