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Molly is a 30% partner in the MAP Partnership. During the current tax year, the partnership reported ordinary income of $200,000 after payment of guaranteed
Molly is a 30% partner in the MAP Partnership. During the current tax year, the partnership reported ordinary income of $200,000 after payment of guaranteed payments and distributions to partners. The partnership made an ordinary cash distribution of $20,000 to Molly, and paid guaranteed payments to partners Molly, Amber, and Pat of $20,000 each ($60,000 total guaranteed payments). How much will Mollys adjusted gross income increase as a result of the above items?
a. | $60,000 | |
b. | $20,000 | |
c. | $80,000 | |
d. | $62,000 | |
e. | $100,000 |
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