Barb and Ken are partners in the Playhouse Partnership.They received guaranteed payments of $250,000 each and no other guaranteed payments were made by the partnership. Playhouse Partnership also reported the following items of income and expense for the current year:

Income from operations

$1,050,000

Dividends from Montreal-based corporation

225,000

Interest on Sears bonds

125,000

Realestate taxes on property usedforoffice

50,000

What is Playhouse Partnership's ordinary income for the current year?

A $850,000

B $550,000

C $500,000

D $625,000