Answer:
Stacey report on her income tax return in three categories
1. Total ordinary income = $50,000
2. Interest income = $2,500
3. Charitable contributions = $4,000
Explanation:
Basically, Stacey report on her income tax return in three categories
1. Total ordinary income: It is somewhat same as net income
So, the ordinary income equal to
= (Revenues - expenses) × partnership percentage
= ($300,000 - $100,000) × 25%
= $50,000
2. Interest income: It is computed below
= Interest income × partnership percentage
= $10,000 × 25%
= $2,500
3. Charitable contribution: It is computed below
= Charitable contributions × partnership percentage
= $16,000 × 25%
= $4,000
