5. Partnership M reported the following items: Income from sales Distribution (cash) made to all partners Repair expense Depreciation expense Charitable contribution $180,000 50,000 (total) 9,000 25,000 11,500 Partnership Ms ponseparately stated ordinary income (loss) for the current year is: a $146,000 b. $134,500 C. $96,000 d. $84,500 e. none of the above. 6. Paul, David, and Ralph form a partnership. Their ownership percentages are 63%, 25%, and 12%, respectively, and they agree to share profits and losses in these ratios. Pauluses a January 31 fiscal year-end, while David and Ralph use a November 30 fiscal year-end. Unless the partnership obtains IRS permission to adopt a different taxable year, this partnership will use a: a December 31 year-end. b. January 31 year-end. C November 30 year-end. d any year-end they would like to use. e none of the above. 7. The MNO Partnership, a calendar year taxpayer, was formed on June 1of the current year and started business on October 1. MNO incurred: Legal fees on formation $9,000 Rent expense for the period June 1 - September 30 8,000 Rent expense for the period October 1 - December 31 6,000 Syndication costs to market partnership interests to investors 35,000 If MNO capitalizes and amortizes all appropriate costs, its amortization expense (rounded) for the current year is: a $5,067 b. $5,050. C $10117 d. $10,700 e. none of the above. 8. Rachel is a 30% partner in BBC Partnership, which operates a qualified trade or business" for purposes of the qualified business income deduction, Rachel's distributive share of BBC's ordinary income this year is $90,000. She also received a guaranteed payment for services of $15,000 and a cash distribution of $10,000 from BBC this year. If Rachel's modified taxable income for purposes of the qualified business income deduction is $130,000, her qualified business income deduction this year a. $18,000 b. $20,000 C. $21,000. d. $23,000 e none of the above