The XYZ Partnership reports the following operating results for the current year: $$\begin{array} { | l | r| }
\hline \text { Net long-term capital loss } & ( \$ 40,000 ) \
\hline \text { Net Sec. } 1231 \text { loss } & ( 16,000 ) \
\hline \text { Ordinary income } & 50,000 \
\hline
\end{array}$$ Tai has a 20% profits interest and a 25% loss interest in the XYZ Partnership. His distributive share of ordinary income is
A) $6,800.
B) $8,500.
C) $10,000.
D) $12,500.

Question

The XYZ Partnership reports the following operating results for the current year: $$\begin{array} { | l | r| } 
\hline \text { Net long-term capital loss } & ( \$ 40,000 ) \
\hline \text { Net Sec. } 1231 \text { loss } & ( 16,000 ) \
\hline \text { Ordinary income } & 50,000 \
\hline
\end{array}$$ Tai has a 20% profits interest and a 25% loss interest in the XYZ Partnership. His distributive share of ordinary income is
A) $6,800.
B) $8,500.
C) $10,000.
D) $12,500.

Quizplus · Accepted Answer

The Answer of The XYZ Partnership reports the following operating results for the current year: $$\begin{array} { | l | r| } 
\hline \text { Net long-term capital loss } & ( \$ 40,000 ) \
\hline \text { Net Sec. } 1231 \text { loss } & ( 16,000 ) \
\hline \text { Ordinary income } & 50,000 \
\hline
\end{array}$$ Tai has a 20% profits interest and a 25% loss interest in the XYZ Partnership. His distributive share of ordinary income is
A) $6,800.
B) $8,500.
C) $10,000.
D) $12,500.

The XYZ Partnership Reports the Following Operating Results for the Current