30. William and Jorge start a partnership as equal partners where each invests $200,000 in cash. Jorge runs the day-to-day operations and receives guaranteed payments amounting to $60,000 per year. William does not actively participate and receives no guaranteed payment. The company buys 40,000 widgets for $6 each and sells them for $10 each in the current year. No other expenses are incurred. However, a cash distribution of $10,000 is made to each partner. On his individual income tax return, what is the total income reported by Jorge as a result of this partnership? $50,000 $60,000 $110,000 $120,000

30. William and Jorge start a partnership as equal partners where each invests $200,000 in cash. Jorge runs the day-to-day operations and receives guaranteed payments amounting to $60,000 per year. William does not actively participate and receives no guaranteed payment. The company buys 40,000 widgets for $6 each an sells them for $10 each in the current year. No other expenses are incurred. However, a cash distribution of $10,000 is made to each partner. On his individual income tax return, what is the total income reported by Jorge as a result of this partnership? - $50,000 - $60,000 - $110,000 - $120,000