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Income tax 2 Mohamed Khan and Aaron Grieve are equal partners in a small business which received the following income in 2020: business income of
Income tax 2
Mohamed Khan and Aaron Grieve are equal partners in a small business which received the following income in 2020: business income of $150,000, interest of $4,000, and a capital gain of $10,000. Mohamed withdrew $20,000 from the partnership during 2020 and Aaron withdrew $25,000. Which of the following is correct for the 2020 taxation year? Select one or more: O a. Both partners have a net income for tax purposes from the business of $82,000. b. Both partners have a net income for tax purposes from the business of $79,500. c. Mohamed's net income for tax purposes from the business is $58,800 and Aaron's net income for tax purposes is $53,800. d. Both partners have a net income for tax purposes from the business of $75,000Step by Step Solution
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