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, 2012, the partnership had $400,000 net income and for fiscal year ending September 30, 2013, the partnership had $300,000 net income. April withdrew $100,000 in December of each year. April's gross income from the partnership for 2012 is $160,000 ($400,000 ´ 40%).

Question

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April's gross income from the partnership for 2012 is calculated as follows: $400,000 net income x 40% ownership = $160,000. Regardless of when she withdrew the money, her gross income for the fiscal year is based on the partnership's net income.

April, a Calendar Year Taxpayer, Is a 40% Partner in Pale