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On January 2, Year 1, Arch and Bean contribute cash equally to form the JK...

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Accounting

On January 2, Year 1, Arch and Bean contribute cash equally to form the JK Partnership. Arch and
Bean share profits and losses I a ratio of 75% to 25%, respectively. For Year 1, the partnership's
ordinary income was $40,000. A distribution of $5,000 was made to Arch during Year 1. What is
Arch's share of taxable income for Year 1?
a. $10,000
b. $5,000
c. $30,000
d. $20,000
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