April is a 50% partner in Pale Partnership.During the year,she withdraws $100,000 and her share of the partnership profits is $125,000.April must include $125,000 in her gross income.

Question

Quizplus · Accepted Answer

As a 50% partner, April is entitled to half of the partnership profits, which in this case is $125,000. This amount must be included in her gross income, along with any other income she received, such as the $100,000 she withdrew from the partnership. Therefore, the statement is true.

April Is a 50% Partner in Pale Partnership