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QRS, a partnership, had taxable income of $120,000 for the fiscal year ended September 30, 2016....

QRS, a partnership, had taxable income of $120,000 for the fiscal year ended September 30, 2016. For the first quarter ending December 31, 2016, taxable income was $30,000. During 2016, Q, a partner with a 30% interest in profits and losses, withdrew $1,000 per month for a total of $12,000. What is Q’s taxable income from QRS for 2016?

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Answer : Q's taxable income from QRS for 2016 will be $12000 .if the drawn $1000 is on account of salary or interest , otherwise if it is only drawing outprofit then it wont be taxable income will be 0 .and firm will have to pay tax on its own taxable income .

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