Elena owns 25% of a partnership that reported net income of $100,000 for the year. During the year $5,000 was distributed to Elena from the partnership. How much should Elena include in her taxable income for the year?
A) $30,000
B) $25,000
C) $5,000
D) $0

Question

Quizplus · Accepted Answer

Elena's share of the net income is 25% of $100,000 which is $25,000. She already received $5,000, so she should include the remaining $20,000 in her taxable income for the year.

Elena Owns 25% of a Partnership That Reported Net Income