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Amy and Mary are each partners in a partnership (A&M Partnership). According to their partnership agreement, all income is to be allocated equally between them, but in no chase shall the allocation to Amy be less than $75,000 per year (i.e. Amy's receives a minimum guaranteed payment of $75,000 each year). This year A&M generated $107,200 net profit.
Problem 1: Compute Amy and Mary taxable income for the year and each partner's distributive share of that income.
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