Nash and Ford are partners who share profits and losses equally. For the current tax year, the partnership had book income of $70,000 which included the following deductions:
Guaranteed payments to partners:
Nash $35,000
Ford 25,000
Charitable contributions 5,000
What amount should be reported as ordinary income on the partnership return for the current tax year?
a. $75,000
b. $85,000
c. $130,000
d. $135,000
e. None of the above
a
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Bridget has a company that is externally focused and highly controlled. She feels that she needs to pressure her employees to perform in a demanding work environment in order to get the results she needs to beat the competition. Bridget’s company would fit into which type of culture of the competing values framework?
A. hierarchy B. adhocracy C. market D. clan
Andy Kim was quietly having a beer one night at Casey's Tavern when he was suddenly and without warning attacked by Red Nekk, who was clearly intoxicated
Red is somewhat notorious around Casey's: he gets thrown out about once a week for starting fights and knows that. On other occasions when he's been there, there have been two bouncers, so he's felt safe. Unfortunately, they were both breaking up another fight when he was suckered by Red. Andy suffered cuts and bruises as a result of this incident, and he sues Casey's for negligence. Which of the following is TRUE? A) The defendant had no duty to protect Andy from attack by its patrons. B) Andy voluntarily assumed the risk of an assault when he attended a place like Casey's. C) The defendant took reasonable care to protect its patrons by employing two bouncers. D) The defendant should have barred Red from the premises, given his history. E) There was nothing the defendant could have done in the circumstances to have protected Andy from an attack.
Maria's Distributing Inc sells 20 fax machines to Bill's Electronics Ltd. for $2,000 to be paid in 30 days. No other terms are agreed to. The fax machines are delivered to Bill's the next day
Forty-five days later, Bill's puts up a going out of business sign and advertises these fax machines at $50 each. Bill's has not made one payment to Maria's. Which of the following is true? A) Maria's Distributing Inc. is the owner of the fax machines. B) Bill's Electronics Ltd. is the owner of the fax machines C) Because Bill has not paid, Maria's Distributing Inc. can repossess the fax machines. D) Both A and C. E) Both B and C
Profits are easements with a right of removal
Indicate whether the statement is true or false