Hay, Straw and Clover formed the HSC Partnership, agreeing to share profits and losses equally. Clover will manage the business for which he will receive a guaranteed payment of $30,000 per year. Cash receipts and disbursements for the year were as follows:
What is Clover's share of the partnership's ordinary income and guaranteed payment?
A) Ordinary income, $30,000; Guaranteed payment, $10,000
B) Ordinary income, $20,000; Guaranteed payment, $10,000
C) Ordinary income, $30,000; Guaranteed payment, $30,000
D) Ordinary income, $20,000; Guaranteed payment, $30,000
Correct Answer:
Verified
Q44: Martha Pim is a general partner in
Q45: Which of the following statements about partnerships
Q47: In 2012, Mike Elfred received a $165,000
Q54: During 2012, Elena generated $24,500 of earnings
Q55: Sue's 2012 net (take-home) pay was $23,805.
Q56: Waters Corporation is an S corporation with
Q57: Waters Corporation is an S corporation with
Q59: Debbie is a limited partner in ADK
Q70: Cramer Corporation and Mr. Chips formed a
Q72: Cramer Corporation and Mr. Chips formed a
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents