How much is partnerships ordinary income

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During 2017, the Tastee Partnership reported income before guaranteed payments of $92,000. Stella owns a 90% profits interest and works 1,600 hours per year in the business. Euclid owns a 10% profits interest and performs no services for the partnership during the year. For services performed in 2017, Stella receives a “salary” of $6,000 per month. Euclid withdrew $10,000 from the partnership during the year.

If required, round your answers to the nearest dollar.

a. What is the amount of guaranteed payments made by the partnership during 2017? $

b. How much is the partnership’s ordinary income after any deduction for guaranteed payments? $

c. For 2017, how much income will Stella and Euclid report?

Stella: $

Euclid: $

Reference no: EM131292209

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