ABC Partnership distributes $12,000 to partner Al. Al's distributive share of partnership income is $20,000. Al is taxed on $20,000.

Name: ABC Partnership distributes $12,000 to partner Al. Al's distributive share of partnership income is $20,000. Al is taxed on $20,000.
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Al's distributive share of partnership income is used to calculate his taxable income, even if he received less in actual distributions from the partnership.

ABC Partnership Distributes $12,000 to Partner Al