Under a partnership agreement, Didier Foucault is to receive 30%of the partnership's income, but not less than
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Under a partnership agreement, Didier Foucault is to receive 30%of the partnership's income, but not less than $21,000. The partnership's net income for this year was $52,000. What amount can the partnership deduct as a guaranteed payment and what amount of income is Didier required to report on his individual tax return?
A) Partnership deduction: $21,000. Didier's income: $36,600.
B) Partnership deduction: $21,000. Didier's income: $15,600.
C) Partnership deduction: $5,400. Didier's income: $36,600.
D) Partnership deduction: $5,400. Didier's income: $21,000.
Related Book For
Fundamental Accounting Principles Volume II
ISBN: 978-1260305838
16th Canadian edition
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
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