Rex became a partner with a 30% interest in the partnership profits when he invested $200,000. In

Question:

Rex became a partner with a 30% interest in the partnership profits when he invested $200,000. In 2017, the partnership generated $400,000 of taxable income, and Rex withdrew $100,000. In 2018, the partnership had $600,000 of taxable income, and Rex withdrew $200,000. What is Rex’s gross income from the partnership in 2017 and 2018?

Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...