Question

The B&W partnership earned taxable income of $140,000 for the year. Bryan is entitled to 50% of the profits, but Bryan withdrew only $60,000 during the year. What is Bryan's gross income from the partnership for the year?

1) $60,000
2) $70,000
3) $80,000
4) $140,000

Answer 1

Bryan's gross income from the partnership for the year is $70,000, which represents his 50% share of the partnership's taxable income.

Step-by-step explanation:

The subject of this question is Business, specifically focused on the concept of partnership income distribution. The B&W partnership earned a taxable income of $140,000 for the year. As per the partnership agreement, Bryan is entitled to 50% of the profits, which would be half of $140,000, hence $70,000. This is his share of the profit irrespective of the amount he actually withdrew during the year. Therefore, Bryan's gross income from the partnership for the year is $70,000.