17.Linda is a 50% partner in Deacon's Deli. She is to receive a guaranteed payment of $20,000. If the partnership's ordinary income before deducting the guaranteed payment is $70,000, what is Linda's distributive share of ordinary income?

A.$15,000

B.$20,000

C.$25,000

D.$35,000

18.Jane O'Neil owns a 50% interest in partnership J&B. She contributes a computer system with a FMV of $15,000 and an adjusted basis of $10,000 to the partnership. The partnership's basis in the computer system will be _________ and Jane's outside basis will increase by ___________.

A.$10,000; $10,000.

B.$10,000; $15,000.

C.$15,000; $10,000.

D.$15,000; $15,000.

19.For partnerships, the qualified business income (QBI) items reported on Schedule K-1 should include the Section 199A business income, the W-2 wages of any qualified trade or business, and:

A.The adjusted basis of qualified property.

B.The unadjusted basis of qualified property.

C.The adjusted basis of qualified property and guaranteed payments made to the partners.

D.The unadjusted basis of qualified property and guaranteed payments made to the partners in lieu of salary

20.All of the following regarding Schedule M-2 (Form 1065) are correct EXCEPT:

A.Schedule M-2 tracks the partners' capital accounts.

B.Schedule M-2 tracks the partners' basis in the partnership.

C.Schedule M-2 includes capital contributed by the partners during the year.

D.When completing Schedule M-2, determine if the partnership uses financial accounting or tax accounting.