3. In computing the ordinary income of a partnership, a deduction is allowed for a. Net Section 1231 losses b. Bad debts c. Foreign income taxes paid d. Charitable contributions 4. Meg and Abby are equal partners in AM Partnership, which earns $40,000 ordinary income, $6,000 long-term capital gain (LTCG), and $2,000 Sec. 1231 loss during the current year. What is the amount and character of income that must be reported on Abbys tax return for this years partnership operations? a. $20,000 ordinary income, $3,000 LTCG, $1,000 Sec. 1231 loss b. $19,000 ordinary income, $2,000 LTCG c. $20,000 ordinary income, $4,000 LTCG d. $19,000 ordinary income, $1,000 Sec. 1231 loss