QUESTION 39Max and Freda are both 50% partners in Best Consulting, a partnership that is a qualified trade or business. In the current year, Best had$200,000 of ordinary income after reporting $210,000 in guaranteed payments to Max and Freda for their services to Best ($105,000each). What is Max's qualified business income?Oa. $205,000.Ob. $105,000.c. $100,000.Od. None of the above.QUESTION 40Sarah operates a consulting firm as a sole proprietorship using the cash method of accounting. Sarah incorporates herbusiness and transfers the following items to a new, solely owned corporation.Adjusted BasisS10,000FMVS 10,000100,000120,00060,00050,000CashEquipmentAccounts Receivable80,000Accounts payable (deductible)Notes Payable on Equipment50,000Sarah must recognize a gain ofO A) zero; $30,000.and has'a stock basis ofB) zero, $40,000.C) $20,000; $30,000.D) $20,000; $40,000.

QUESTION 39 Max and Freda are both 50% partners in Best Consulting, a partnership that is a qualified trade or business. In the current year, Best he $200,000 of ordinary income after reporting $210,000 in guaranteed payments to Max and Freda for their services to Best ($105,000 each). What is Max's qualified business income? Oa. $205,000. Ob. $105,000. c. $100,000. d. None of the above.

QUESTION 39 Max and Freda are both 50% partners in Best Consulting, a partnership that is a qualified trade or business. In the current year, Best he $200,000 of ordinary income after reporting $210,000 in guaranteed payments to Max and Freda for their services to Best ($105,000 each). What is Max's qualified business income? Oa. $205,000. Ob. $105,000. c. $100,000. d. None of the above.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter21: Partnerships

Section: Chapter Questions

Problem 7BCRQ

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