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35. Emily and Joe are equal partners in a limited partnership. Emily is a limited partner and Joe is the general partner. Emily's outsid and
35. Emily and Joe are equal partners in a limited partnership. Emily is a limited partner and Joe is the general partner. Emily's outsid and Joe's is $40,000. This year the partnership did really well and made taxable profit of $30,000. The partnership made distributions of cash to each partner of $50,000. Which of the following is true about the distributions? Joe will have a taxable return of basis of $50,000 a. b. Emily does not have to pay tax on her profit allocation as she is a limited partner c. Joe and Emily each have received taxable dividend distributions of $50,000 d. Emily will be taxed on total income of $36,000 e. Emily will be taxed on total income of $15,000
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