Partnership reported ordinary income


Marcie is a 40% partner in the MAP Partnership. During the current tax year, the partnership reported ordinary income of $140,000 before payment of guaranteed payments and distributions to partners. The partnership made an ordinary cash distribution of $10,000 to Marcie, and paid guaranteed payments to partners Marcie, Alice, and Pat of $20,000 each ($60,000 total). How much will Marcie's adjusted gross income increase as a result of the above items?

a. $32,000

b. $52,000

c. $56,000

d. 76,000

e. None of the above

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Accounting Basics: Partnership reported ordinary income
Reference No:- TGS074264

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