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) $20,000 ordinary income, $3,000 LTCG, $1,000 Sec. 1231 loss
B) $19,000 ordinary income, $3,000 LTCG
C) $23,000 ordinary income, $1,000 Sec. 1231 loss
D) $22,000 ordinary income
A) $20,000 ordinary income, $3,000 LTCG, $1,000 Sec. 1231 loss
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