Question 9 of 75.

Sandi is a 25% partner in Partnership BQSV. Under the terms of the partnership agreement, she is to receive 25% of the partnership income, but no less than $35,000. If the store's net income for the year is $88,000, what amount of income does Sandi earn from this partnership? A) $22,000; B) $35,000; C) $57,000; D) $88,000

Question 10 of 75.

Jordan contributed $15,000 for a 50% interest in a food truck. She also contributed a computerized display board with a fair market value of $1,300 and an adjusted basis of $1,100. During the year, the business earned a profit of $20,000. What is Jordan's partnership basis in this business at the end of the year? A) $15,000; B) $26,100; C) $26,300; D) $30,000

Question 11 of 75.

When preparing Form 1065, U.S. Return of Partnership Income, what entries must be made in order for the partners to claim the qualified business income (QBI) deduction? A) The appropriate QBI adjustments must be made on the partnership's balance sheet and reported correctly on page 5 of Form 1065. B) Each partner's Schedule K-1 (Form 1065) should report the amount of their QBI deduction in Part III, box 13, other deductions.; C) The information each partner will need to calculate their share of the QBI deduction should be reported on their Schedule K-1 (Form 1065), box 20, other information, using Code Z, and an attached statement. D) The QBI deduction will reduce the amount of the partnership's ordinary business income and must be included in total deductions reported on page 1 of Form 1065.

Question 12 of 75.

Tanisha is to receive 25% of the profits from partnership Plumeria Designs, before taking into account any guaranteed payments, but not less than $8,000. If the partnership's income is $16,000 before taking into account guaranteed payments, how much does Tanisha receive as a guaranteed payment? A) $2,000 B) $4,000 C) $8,000 D) $12,000

Question 13 of 75.

Chana contributed $6,000 for a 50% interest in a mobile clothing boutique. She also contributed a point of sale system with a fair market value of $900 and an adjusted basis of $600. During the year, the boutique earned a profit of $18,000. What is Chana's partnership basis in this business at the end of the year? A) $6,000; B) $9,000; C) $15,600, D) $15,900

Question 14 of 75.

Choose the response that correctly completes the following sentence. A guaranteed payment is made to a general partner: A) Based on the profits of the partnership, and the payment is subject to self-employment tax. B) Based on the profits of the partnership, and the payment is NOT subject to self-employment tax. C) Without regard to the income of the partnership, and the payment is subject to self-employment tax. D) Without regard to the income of the partnership, and the payment is NOT subject to self-employment tax.

Question 15 of 75.

Bob and Stuart are equal partners in B&S Banana Goods, a specialty store that sells banana-related merchandise. Bob contributed $16,000 in cash, and Stuart contributed inventory with a fair market value of $16,000 and an adjusted basis of $13,000. Which of the following statements about this partnership is TRUE? A) Bob's basis in the partnership is $16,000 and Stuart's is $13,000. B) Bob and Stuart each have a basis in the partnership of $16,000. C) Bob will have a larger share of the profits than Stuart. D) Stuart will have a larger share of the profits than Bob.

Question 16 of 75.

Lake Washington Partners incurred the following expenses during the year. Which of these should be reported as a trade or business activity deduction on Form 1065, U.S. Return of Partnership Income? A) Charitable contributions made to a qualifying non-profit. B) Contributions made to a partner's retirement plan. C) Fines assessed for violating state and local housing codes. D) Guaranteed payments to partners.

Question 17 of 75.

The basis of a partner's interest in the partnership is increased by which of the following? A) Charitable contributions made by the partnership. B) Distributions to a partner of either cash or partnership property valued at the adjusted basis of the property. C) The partner's distributive share of partnership losses. D) The partner's distributive share of the partnership's taxable and nontaxable income.