The B & W Partnership earned taxable income of $140,000 for the year. Bryan is entitled to 50% of the profits, but Bryan withdrew only $60,000 during the year. Bryan's gross income from the partnership for the year is $60,000.

Question

Quizplus · Accepted Answer

Bryan's gross income from the partnership is based on his share of the profits, not the amount withdrawn. Therefore, his gross income is $70,000 (50% of $140,000).

The B & W Partnership Earned Taxable Income of $140,000