contestada

Carol sold 50% of her business to her mother. The resulting partnership had income of $200,000. Capital is a material income-producing factor. Carol performed services worth $90,000, which is reasonable compensation, and her mother performed no services. What is the maximum amount of income Carol’s mother can report from the partnership for the tax year?

Respuesta :

jepessoa

Answer:

$55,000

Explanation:

The partnership's income = $200,000

To determine what each partner should receive we must subtract carol's compensation for her work $90,000:

partnership's net income = $200,000 - $90,000 = $110,000

then we divide the net income by 2 = $110,000 / 2 = $55,000

Otras preguntas