Dale's distributive share of income from the calendar year partnership of Dale & Eck was $50,000 in 2014. On December 15, 2014, Dale, who is a cash-basis taxpayer, received a $27,000 distribution of the partnership's 2014 income, with the $23,000 balance paid to Dale in February 2015. In addition, dale received a $10,000 interest-free loan from the partnership in 2014. This $10,000 is to be offset against Dale's share of $2015 partnership income. What total amount of partnership income is taxable to Dale in 2014?
a. $27,000
b. $37,000
c. $50,000
d. $60,000
Answer: C
Tax
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