Solution-What is the amount and character of income

What is the amount and character of income

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Question - Meg and Abby are equal partners in the AM Partnership, which earns $40,000 ordinary income, $6,000 long-term capital gain (LTCG), and $2,000 Sec. 1231 loss during the current year. What is the amount and character of income that must be reported on Abby's tax return for this year's partnership operations?

A. $22,000 ordinary income.

B. $19,000 ordinary income, $3,000 LTCG.

C. $20,000 ordinary income, $3,000 LTCG, $1,000 Sec. 1231 loss.

D. $23,000 ordinary income, $1,000 Sec. 1231 loss.

Reference no: EM132447295

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What is the amount and character of income

Reference no: EM132447295

Reference no: EM132447295

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