Kaylyn is a 40% partner in the KKM Partnership.During the current year,KKM reported gross receipts of $160,000 and a charitable contribution of $10,000.The partnership paid office expenses of $100,000.In addition,KKM distributed $10,000 each to partners Kaylyn and Kristie,and the partnership paid partner Megan $20,000 for administrative services.Kaylyn reports the following income from KKM during the current tax year:
A) $4,000 ordinary income.
B) $12,000 ordinary income.
C) $8,000 ordinary income;$4,000 charitable contribution.
D) $16,000 ordinary income;$4,000 charitable contribution.
E) None of the above.
Correct Answer:
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