11-23 Net Income from Operations. A and B are MDs in the AB partnership. Because of limited liability considerations, their attorney has advised them to incorporate. A typical year for the MDs (who are equal partners) is as follow Revenues... $400,000 190,000 10,000 Owner compensation ..... 200,000 a. Calculate AB's ordinary net income if it is taxed as (1) a partnership or (2) an S corporation. Operating expenses. Charitable contributions.. b. Calculate the effect on A's ordinary income if AB is taxed as (1) a partnership; (2) an S corporation; or (3) a C corporation. c. Ignoring limited liability considerations, should the partners incorporate? If so, should they elect S status? d. If A and B desire partnership tax treatment, is there any business entity that would meet their needs?