Question: Sarena invests $ 1 0 0 , 0 0 0 for a 2 0 % interest in Downtown Partnership. In the first year of operations,

Sarena invests $100,000 for a 20% interest in Downtown Partnership. In the first year of operations, Downtown reports net income from operations of $150,000. That same year, Downtown makes a $15,000 cash distribution to Sarena. How much gross income must Sarena recognize from her investment in Downtown?
Group of answer choices
$15,000
$30,000
$0
$35,000

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