The XYZ Partnership reports the following operating results for the current year: Tai has a 20% profits interest and a 25% loss interest in the XYZ Partnership.His distributive share of ordinary income is

Question

The XYZ Partnership reports the following operating results for the current year:  Tai has a 20% profits interest and a 25% loss interest in the XYZ Partnership.His distributive share of ordinary income is

Quizplus · Accepted Answer

D) Since the partnership has a net loss [($40,000) + ($16,000) + $50,000 = ($6,000)] for the year, Tai's distributive share of the $50,000 of ordinary income is calculated using the 25% loss interest.

The XYZ Partnership Reports the Following Operating Results for the Current