Kaylyn is a 40% partner in the KKM Partnership. During the current year, KKM reported gross receipts of $160,000 and a charitable contribution of $10,000. The partnership paid office expenses of $100,000. In addition, KKM distributed $10,000 each to partners Kaylyn and Kristie, and the partnership paid partner Megan $20,000 for administrative services. Kaylyn reports the following income from KKM during the current tax year: a.$4,000 ordinary income. b.$12,000 ordinary income. c.$8,000 ordinary income; $4,000 charitable contribution. d.$16,000 ordinary income; $4,000 charitable contribution e.None of the above.
Paper#3306 | Written in 18-Jul-2015Price : $25