QUESTION 6

Abhijeet owns a 20% interest in the capital and profits of Emerald Company (a calendar year partnership). For tax year 2021, the partnership earned revenue of $900,000 and had operating expenses of $660,000. During the year, Abhijeet withdrew from the partnership a total of $90,000. He also invested an additional $30,000 in the partnership. For 2021, Abhijeets gross income from the partnership is:

a. $48,000

b. $90,000

c. $150,000

d. $120,000