Reference no: EM133129382

Questions -

Q1. Rocky and Charlie form RC Partnership as equal partners. Rocky contributes? $100,000 into RC while Charlie contributes real estate with a cost and fair market value of? $100,000. During the current? year, RC earned net income of? $600,000. The partnership distributes? $200,000 to each partner. The amount that Rocky should report on his individual tax return is?

A.? $0.

B. ?$300,000.

C. ?$200,000.

D. ?$100,000

Q2. CT Computer? Corporation, an accrual-basis ?taxpayer, sells service contracts on the computers it sells. At the beginning of January of this? year, CT Corporation sold contracts with service to begin? immediately:

One for three months ?$200

One for 20 months 800

One for 48 months ?4,000

The amount of income CT Corporation must report for this year is

A. ?$5,000.

B.? $1,000.

C. ?$1,680.

D. ?$200.