April is a 40% partner in Pale Partnership.During the year,she withdraws $125,000 and her share of the partnership profits is $150,000.April must include $150,000 in her gross income.

Question

Quizplus · Accepted Answer

As a partner, April is responsible for paying taxes on her share of the partnership's profits, which in this case is $150,000. Additionally, any withdrawals she makes from the partnership are considered a distribution of her share of the partnership's assets, and are not taxable. Therefore, the correct answer is A.

April Is a 40% Partner in Pale Partnership