Current calendar year, the partnership''s ordinary income

Assignment Help Taxation

Reference no: EM13995058

On December 31 of last year, Henderson gave his son, Norbert, a gift of a 40% interest in a partnership in which capital is a material income-producing factor. For the current calendar year, the partnership's ordinary income was $140,000. Henderson and Norbert were the only partners in the current year. There were no guaranteed payments to partners. Henderson's services performed for the partnership were worth a reasonable compensation of $40,000 for the current year. Norbert has never performed any services for the partnership. What is Norbert's distributive share of partnership income for the current year?

a. $100,000.

b. $84,000.

c. $56,000.

d. $40,000.

e. None of the above

Reference no: EM13995058

Questions Cloud

In a deferred like exchange situation : In a deferred like exchange situation, who is a person that facilitates the transaction between the parties that would like to exchange properties?

The subsidiary are not investment income : Section _________ a loss is allowed as an ordinary loss to a parent corporation on securities of an ______% or more owned operating subsidiary in which more than _______% of the gross receipts of the subsidiary are not investment income.

A distribution of cash from the partnership : A partner may make a§754 election if the partner recognizes gain on a distribution of cash from the partnership. a. True b. False

Wage inequality and trade : What role has trade and immigration played in this process? What implications does outsourcing have for this trend? What policies, if any, should the U.S. take to offset this trend?

Current calendar year, the partnership''s ordinary income : On December 31 of last year, Henderson gave his son, Norbert, a gift of a 40% interest in a partnership in which capital is a material income-producing factor. For the current calendar year, the partnership's ordinary income was $140,000. Henderson..

Find the speed of the satellite : Consider a satellite with a mass of 314 kg moving in a circular orbit around the Earth at a height of 1303 km above the surface. Find the speed of the satellite in m/s with 3 significant figures.

Find a relationship for the minimum height h : Find a relationship for the minimum height H necessary to ensure that the speed of the capsule is sufficient to enter orbit once it reaches the surface. Your answer should only include the variables given above (i.e. R, d or K) or other universal ..

At what frequency is the circuit in resonance : At what frequency is this circuit in resonance? Find the impedance of this circuit if the frequency has the value found in part A, but the capacitance is increased to 0.275 μF.

The capital asset received in the distribution : Larimer received $30,000 cash and a capital asset with a basis and fair market value of $55,000 in a proportionate liquidating distribution. His basis in his partnership interest was $100,000 prior to the distribution. How much gain or loss does La..

User Account

All Pages