The partnership of Nixon and Whittier realized the following items of income during the year ended December 31,2011: Both of the partners are on a calendar year basis.What is the total income which should be reported as ordinary income from business activities of the partnership for 2011?

Question

The partnership of Nixon and Whittier realized the following items of income during the year ended December 31,2011:  Both of the partners are on a calendar year basis.What is the total income which should be reported as ordinary income from business activities of the partnership for 2011?

Quizplus · Accepted Answer

Adding up the ordinary income ($80,000) and the guaranteed payments ($13,000) gives a total income of $93,000. This is the figure that should be reported as the ordinary income from business activities of the partnership for 2011.

The Partnership of Nixon and Whittier Realized the Following Items