Charles is a 60% partner in CD Partnership, a calendar year partnership. For 2023, Charles received a Schedule K-1 that reported his share of partnership items as follows:

In addition, Charles and his wife, Charlene, had the following items relating to activities outside the partnership:

Charles and Charlene file a joint tax return. Calculate the following items for Charles and Charlene. (Ignore the deduction for one-half of self-employment tax.)

a. Adjusted gross income (AGI)

b. Taxable income

c. Tax liability

d. Taxes due or refund

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Partnership ordinary income $105,000 Tax-exempt income 1,000 Qualified dividend income 3,000 Short-term capital loss 20,000 Sec. 1231 loss 17,000 Charitable contributions 2,000 Cash distribution 60,000 Guaranteed payment 40,000