Demarcus is a 50% partner in the DJ partnership. DJ has taxable income for the year of $200,000. Demarcus received a $75,000 distribution from the partnership. What amount of income related to DJ must Demarcus recognize?
A)$200,000
B)$75,000
C)$100,000
D)$37,500

Question

Quizplus · Accepted Answer

Demarcus must recognize $100,000 of income, which represents his 50% share of the DJ partnership's taxable income of $200,000. The distribution amount does not affect the income he must recognize from the partnership.

Demarcus Is a 50% Partner in the DJ Partnership