10 free CPA practice questions in the real exam format, covering the official content areas, with an explanation for every answer.
CPA Practice Test 11Tutor mode
Question 1 of 10
Federal Taxation of Entities (including tax preparation)
Kim Osei, a general partner in Cobalt Lane Partners, receives a $60,000 annual payment for managing the business, payable regardless of partnership income. Kim also has a 25% share of partnership profits. How is the $60,000 treated for federal income tax purposes?