Question

ne per Distributions of money and the adjusted basis of other property distributed to the partner Mark for follow up Question 30 of 75. Linda is a 50% partner in Deacon's Deli. She is to receive a guaranteed payment of $20.000. Wt the partnership's ordinar income before deducting the guaranteed payment is $70,000, what is Linda's distributive share of ordinary income? $15,000 $20,000 $25,000 $35,000 wrong iniest Mark for follow up uestion 31 of 75. son sold his interest in a partnership for $25,000 cash when his outside basis was $10.000. He was re 0.000 share of partnership liabilities. What is Jason's realized value from the sale of his partnership

Answer 1

Answer 30 of 75 The correct Option is C. i.e., $25,000 In this type pf problem, the wording and language of the question is very important to adjudicate the answers. The question's asks “Distributive share of Ordinary Income”. Distributive share of Income refers to that allocation of income posts all additions, deductions, subtractions & exemptions and is paramountly based on the percentage of holding of each stakeholder. So here-in-case; Distributive share of Ordinary Income = $70,000 - $20,000 = $50,000 Share of Linda = 50% of $50,000 = $25,000

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