a. Compute Gary's share of self-employment income (loss) to be reported on his year 1 Schedule K-1, assuming G&P is a limited partnership and Gary is a limited partner.

b. What do you believe Gary's share of self-employment income (loss) to be reported on his year 1 Schedule K-1 should be, assuming G&P is an LLC and Gary spends 2,000 hours per year working there full time?

Requlred Information Problem 09.61 (LO 09.4) (Algo) [The following Information applies to the questions displayed below.] The partnership agreement of the G\&P general partnership states that Gary will recelve a guaranteed payment of $15,100, and that Gary and Prudence will share the remaining profits or losses In a 45/55 ratio. For year 1 , the G\&P partnership reports the following results: Requlred Information Problem 09.61 (LO 09.4) (Algo) [The following Information applies to the questions displayed below.] The partnership agreement of the G\&P general partnership states that Gary will recelve a guaranteed payment of $15,100, and that Gary and Prudence will share the remaining profits or losses In a 45/55 ratio. For year 1 , the G\&P partnership reports the following results