Question

The Jolly Partnership reported the following items for the current year: Income from clients $190,000 Short-term capital gains 1,000 Dividend income 2,000 Cash operating expenses (125,000) Depreciation expense (6,000) Long-term capital loss (5,000) What is Jolly Partnership’s ordinary income?

Answer 1

Answer:

$ 193,000

Explanation:

Ordinary Income means the money earned from working. The ordinary income may include hourly salaries and wages, commissions, interest income, from bonds, capital gains, royalties or income from ordinary course of business.

So the ordinary income for Jolly Partnership is:

Income from clients $ 190,000

Capital gains            $      1,000

Dividend Income      $     2,000

Ordinary Income:      $ 193,000