The A-B-C company is a partnership performing accounting services within and without California. There are three partners, A, B, and C. Partners A and B render professional services to the partnership. Partner C is not active in the partnership business. Partner A is a resident of California, and Partners B and C are residents of Oregon. Each partner's principal location is in his or her respective state of residence. The partners' distributive shares of profit or loss are: A, 50%; B, 30%; and C, 20%. In addition, Partner B receives a guaranteed payment of $10,000. Partnership profits after the deduction for the guaranteed payment are $60,000 for the year. Of that amount, $50,000 is business income and $10,000 is nonbusiness income from a California real estate rental. All of the nonbusiness income is sourced to California. The partnership's income apportionment percentage for California is 40.72%. 

Determine the total income reportable to California by Partner B.

Answer rating: 100% (QA)

To determine the total income reportable to California by Partner B we need to consider both ... View the full answer