10. Under the terms of a partnership agreement, Annabelle is entitled to a fixed annual payment of $10,000 without regard to the income of the partnership. Her distributive share of the partnership income is 10%. The partnership has $50,000 of ordinary income after deducting the guaranteed payment. Which of the following states the amount and character of Annabelles income from the partnership? a. $15,000 of ordinary income b. $10,000 capital gain and $5,000 of ordinary income c. $15,000 of capital gain d. $10,000 of ordinary income and $5,000 capital gain 11. On January 1, 2010, Jon purchased 50% of Waite, an S corporation, for $75,000. At the end of 2010, Waite incurred an ordinary loss of $160,000. How much of the loss can Jon deduct on his personal income tax return for 2010? a. $37,500 b. $75,000 c. $80,000 d. $160,000 12. Mighty Manny, Incorporated manufactures ice scrapers and distributes them across the midwestern United States. Mighty Manny is incorporated and headquartered in Michigan. It has product sales to customers in Illinois, Indiana, Iowa, Michigan, Minnesota, and Wisconsin. It has sales personnel only where discussed. Determine the state in which Mighty Manny does not have sales and use tax nexus given the following scenarios: a. Mighty Manny is incorporated and headquartered in Michigan. It also has property, employees, sales personnel, and intangibles in Michigan. b. Mighty Manny has a warehouse in Illinois. c. Mighty Manny has independent sales representatives in Minnesota. The representatives distribute ice scraper-related items for over a dozen companies. d. Mighty Manny has two customers in Wisconsin. Mighty Manny receives orders over the phone and ships goods to its customers using FedEx