Answer the following questions carefully:

Mary and Jane own M & J Company. They each own 50 percent and have agreed to share all income and distributions equally. Mary received compensation because of the extra time Mary devotes to the business making managerial decisions. M & J Company reflected the following information regarding 2021 operations.

Net Income before considering compensation and distributions $180,000 Compensation to Mary for services rendered 30,000 Distributions to Mary and Jane 20,000 ($10,000 each).

If the business entity is a partnership, assume Mary's payments are "guaranteed payments" that were agreed upon by both partners in a formal partnership agreement. If the entity is an S-corp or a C-corp, assume Mary's payment is in the form of a salary.

Below is a list of business entities. Report the income that should be reported under each scenario below regarding the structure for M&J Company.

Group of answer choices

Assume M&J is an S Corporation, what is MARY's Income in 2021?

[ Choose ] $125,000 $30,000 $85,000 $105,000 $75,000 $115,000 $0 $40,000

Assume M&J is a C Corporation, what is MARY's Income in 2021?

[ Choose ] $125,000 $30,000 $85,000 $105,000 $75,000 $115,000 $0 $40,000

Assume M&J is an LLC, what is JANE's Income in 2021?

[ Choose ] $125,000 $30,000 $85,000 $105,000 $75,000 $115,000 $0 $40,000

Assume that M&J is a partnership, what amount of income will the partnership pay taxes on in 2021?

[ Choose ] $125,000 $30,000 $85,000 $105,000 $75,000 $115,000 $0 $40,000