Choose the types of income that qualify as net investment income for the purposes of assessing the Net Investment Income tax. a. Self-employment income Dividend income Interest income.
b. Tax-exempt interest income.
c. Excluded gain on sale of a personal residence.
d. Distributions from qualified retirement plans.
e. Income from a trade or business that is a passive activity

$18,000

Explanation:

Required:

Find the amount of income Perimeter recognizes in 20X1 as a result of the investment.

Amount of income to be recognized should be calculated as:

Share of net income - Amortization of equipment in excess of book value

Where,

Share of net income = 30% of net income

= 30% × $80,000

= $24,000

Less: Amortization of equipment in excess of book value =

Therefore, amount of income to be recognized =

$24,000 - $6,000

= $18,000

Amount of income Perimeter recognizes in 20X1 as a result of this investment is $18,000