Sophia owns 20% of a partnership that reported net income of $130,000 for the year.During the year $18,000 was distributed to Sophia from the partnership.How much should Sophia include in her gross income for the year?
A)$44,000.
B)$29,000
C)$26,000
D)$44,000

Question

Quizplus · Accepted Answer

Sophia should include 20% of the partnership's net income in her gross income, which is $130,000 * 20% = $26,000. The distribution of $18,000 is not relevant for calculating her share of the partnership's income.

Sophia Owns 20% of a Partnership That Reported Net Income