For the year ended December 31, 2013, the partnership of Charles and Paul had book income of

Question:

For the year ended December 31, 2013, the of Charles and Paul had book income of $75,000, which included the following: (a) Short-term capital loss, $3,100; (b) Long-term capital gain (on sale of securities), $4,300; (c) Section 1231 gain, $1,500; (d) Ordinary income (Section 1245 recapture), $600; and (e) Domestic dividends, $1,000. The partners share profits and losses equally. What is each partner's share of taxable income (excluding all items which must be accounted for separately) to be reported as taxable for 2013?
a. $35,700
b. $36,050
c. $35,650
d. $37,500
e. None of the above
Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...