(1a). 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 (1B). 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