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Three Hills Partnership Had Profits of $210,000 in 20X1

Question 3

Multiple Choice

Three Hills Partnership had profits of $210,000 in 20X1. Shawna Hill invested $100,000 as a limited partner, and her partnership interest is 30%. Shawna is in a 45% tax bracket. What is Shawna's after-tax return on her investment in the partnership?
(Rounded)


A) 63%
B) 30%
C) 48%
D) 35%

Correct Answer:

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