Cornell and Joe are equal partners in Jones Company. For the current year, Jones reports the following items of income and expense:
Sales revenues$500,000
Long-term capital gains14,000
Short-term capital losses(30,000)
Trade and business expenses(200,000)
Limited partnership loss(50,000)
Taxable income$234,000
?
In addition to his Jones earnings, Joe has other net taxable income of $45,000. Included in the $45,000 is $10,000 in income from a passive activity. Joe's income is:
A. $152,000.
B. $157,000.
C. $162,000.
D. $167,000.
E. $182,000.
Answer: E
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