y and Joe are equal partners in a limited partnership. Emily is a limited partner and aais the general partner. Emily's outside basis at the beginning of the year is S4,000 oe Joe's is $40,000. This year the partnership did really well and made taxable protit o 4partnership made distributions of cash to each partner of $50,000. Which of the following is true about the distributions? Joe will have a taxable return of basis of S50,000 Emily does not have to pay tax on her profit allocation as she is a limited partner a. b. Joe and Emily each have received taxable dividend distributions of $50,000 d. c. Emily will be taxed on total income of $36,000 Emily will be taxed on total income of $15,000 e. 36. In 2015, Twix Corporation sold 200,000 shares to new shareholders for a price of $8 per share. In December 2016, Twix repurchased 155,000 shares at $10 per share. How much gain or loss will Twix recognize on these transactions? Gain of $1,600,000 and loss of $310,000 b. a. Gain of $0 and loss of $310,000 Gain of $0 and loss of $O d. c. Gain of $1,600,000 and loss of $1,550,000 Flower Corporation, a calendar year end, accrual method S corporation has two cash method owners who are not related to each other. Greg owns 55% andAdam owns the remaining 45%. During 2011, Flower paid a salary of $200,000 to each shareholder. On December 31, 2011, Flower accrued a bonus of $50,000 to each shareholder. Assuming the bonuses are actually paid to the shareholders on February 1, 2012, what will be Flower's deduction in 2011 and 2012 for the above amounts? 37. and S0 b. $500,000 and $0 c. $250,000 and $250,000 d. $450,000 and $50,000 e. $400,000 and $100,000 a. 38, James Corporation owns 85% of the stock of Jerry Corporation. James has net operating income of $900,000 for the year, not including a dividend received from Jerry of $150,000. What will be James Corporation's taxable income for the year? a. $1,027,500 b. $900,000 c. $1,050,000 d. $945,000 39. Amy and Ben form a new LLC called ABCo and elect to be treated as a partnership. Amy contributes $7,000 in cash while Ben contributes a building worth $10,000 but