61. LO.8 The Pheasant Partnership had the following transactions in the current year:

Operating income $700,000 Cost of goods sold 400,000 Capital gains—

Long-term $20,000 Short-term 10,000 30,000 Salaries 60,000 Tax-exempt interest income 2,000 Rent 24,000 Dividend from IBM stock investment 3,000 Utilities 8,000 Donation to American Red Cross 1,000 Contribution to governor’s reelection campaign 500

a. What is Pheasant’s ordinary income (or loss)?

b. What are Pheasant’s separately stated items?