What should Stacey report on her income tax return

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Problem - Nick, Chris, Stacey, and Mike are each 25% partners in Liberty Partnership, a general partnership. During the current year, the partnership had revenues of $300,000 and nonseparately allocated business expenses of $100,000, including a guaranteed payment of $30,000 to Nick for services rendered. Also, during the current year, the partnership had interest income of $10,000 and charitable contributions of $16,000. With regard to activity in the partnership, what should Stacey report on her income tax return for the current year?


Ordinary Income

Interest Income

Charitable Contributions

a.

$200,000

$10,000

$16,000

b.

$80,000

$2,500

$4,000

c.

$57,500

$2,500

$4,000

d.

$50,000

$2,500

$4,000

Reference no: EM132648264

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