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Theodore has an investment in YYZ Corporation and a different investment in CXB Partnership. He...

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Accounting

Theodore has an investment in YYZ Corporation and a different investment in CXB Partnership. He has a 50-percent ownership stake in each. YYZ generates $100,000 of taxable income after paying corporate tax and makes no distribution to Theodore. CXB generates $50,000 of income and makes a $10,000 cash distribution (not in ex- cess of Theodore's basis). Assuming he does not sell either investment, what is Theo- dore's taxable income from these investments in total?

A. $0

B. $10,000

C. $25,000

D. $35,000

E. $85,000

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