April,a calendar year taxpayer,is a 40% partner in Pale Partnership,whose fiscal year ends on September 30th.For the fiscal year ending September 30,2016,the partnership had $400,000 net income and for fiscal year ending September 30,2017,the partnership had $300,000 net income.April withdrew $100,000 in December of each year.April's gross income from the partnership for 2016 is $160,000 ($400,000 × 40%).

Question

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April's share of the partnership's net income for fiscal year ending September 30, 2016 is $160,000 ($400,000 × 40%). Since April withdrew $100,000 from the partnership in December 2016, her taxable income from the partnership for calendar year 2016 is $60,000 ($160,000 - $100,000).

April,a Calendar Year Taxpayer,is a 40% Partner in Pale Partnership,whose