Martha Pim Is a General Partner in PLF Partnership

Martha Pim is a general partner in PLF Partnership. This year, Martha received a $48,000 guaranteed payment from PLF, and her distributive share of PLF's ordinary business income was $93,200. Which of the following is accurate?

A) Martha must pay income tax on $141,200 and self-employment tax on $48,000.
B) Martha must pay income tax on $141,200 and self-employment tax on $93,200.
C) Martha must pay both income tax and self-employment tax on $141,200.
D) Martha must pay income tax on $48,000 and self-employment tax on $93,200.

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free