Question
Barb and Ken are partners in the Playhouse Partnership. They received guaranteed payments of $250,000 each and no other guaranteed payments were made by the
Barb and Ken are partners in the Playhouse Partnership. They received guaranteed payments of $250,000 each and no other guaranteed payments were made by the partnership. Playhouse Partnership also reported the following items of income and expense for the current year:
| Income from operations | $1,050,000 |
| Dividends from Montreal-based corporation | 225,000 |
| Interest on Sears bonds | 125,000 |
| Real estate taxes on property used for office | 50,000 |
What is Playhouse Partnership's ordinary income for the current year?
| a | $850,000 | |
| b | $550,000 | |
| c | $500,000 | |
| d$625,000 |
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Audit Standards A Comparative Analysis
Authors: Walter W. O Willborn
1st Edition
0873890345, 978-0873890342
