Based only on the example provided, fil out the form below with the ordinary income and the three items that must be reported separately

[6] For the current year, the Murray and Parker Partnership had book income of $100,000, which included the following: Long-term capital gain $7,000 Sec. 1231 loss (3.000) Dividends 200 Interest paid to partners for use of capital 12,000 The partners share profits and losses equally. What amount of partnership income (excluding all partnership items which must be reported separately) should each partner report in his or her individual income tax return for the current year? A. $47,900 B. $48,000 C. $50,000 D. $53,900 The correct answer is A. A. A partnership's ordinary income is the portion of taxable income not required to be stated separately (Sec. 702(a)(8)]. The interest paid to partners is a guaranteed payment which results in an ordinary deduction, Book income may be adjusted to ordinary income by excluding all items of income and adding back all deduction and loss items, which must be separately stated. The partnership's ordinary income is Book income $100,000 Add back: Sec. 1231 loss 3,000 Subtract: Long-term capital gain (7.000) Dividends (200) Partnership ordinary income $ 95,800 Because the partners share profits and losses equally, each partner's share of partnership income is $47,900 (595,800 x 50%). Final K-1 Amended K-1 OMB No. 1545-6123 Schedule K-1 2019 Part III Partner's Share of Current Year Income, (Form 1065) Deductions, Credits, and Other Items Department of the Treasury 1 Ordinary business income (loss) 15 Credits Internal Revenue Service For calendar year 2019, or tax year beginning L / 2019 ending / | 2 Net rental real estate income (loss) Partner's Share of Income, Deductions, 3 Other net rental income (loss) 16 Foreign transactions Credits, etc. See back of form and separate instructions. |Part | Information About the Partnership 4a Guaranteed payments for services A Partnership's employer identification number Murray and Parker Partnership 4b Guaranteed payments for capital B Partnership's name, address, city, state, and ZIP code 4c Total guaranteed payments 5 Interest income C 6a Ordinary dividends IRS Center where partnership filed return D D Check if this is a publicly traded partnership (PTP) Part II Information About the Partner E Partner's SSN or TIN (Do not use TIN of a disregarded entity. See inst.) 6b Qualified dividends 6c Dividend equivalents Alternative minimum tax (AMT) items F Name, address, city, state, and ZIP code for partner entered in E. See instructions. Murray 7 Royalties G D General partner or LLC member-manager Limited partner or other LLC member 8 Net short-term capital gain (loss) 9a Net long-term capital gain (loss) 18 H1 H2 Tax-exempt income and nondeductible expenses Domestic partner Foreign partner U If the partner is a disregarded entity (DE), enter the partner's: Name What type of entity is this partner? If this partner is a retirement plan (IRA/SEP/Keogh/etc.), check here U TIN 9b Collectibles (28%) gain (loss) 11 12 9c Unrecaptured section 1250 gain H2 nondeductible expenses Name 9b Collectibles (28%) gain (loss) 11 12 9c Unrecaptured section 1250 gain If the partner is a disregarded entity (DE), enter the partner's: TIN What type of entity is this partner? If this partner is a retirement plan (IRA/SEP/Keogh/etc.), check here U Partner's share of profit, loss, and capital (see instructions): Beginning Ending Profit 50 % 50 % Loss 50 % 50 % Capital 50 % 50 % Check if decrease is due to sale or exchange of partnership interest. U 10 Net section 1231 gain (loss) 19 Distributions 11 Other income (loss) 20 Other information K Partner's share of liabilities: 12 Section 179 deduction Beginning Ending Nonrecourse . $ 13 Other deductions Qualified nonrecourse financing . S Recourse . U Check this box if item K includes liability amounts from lower tier partnerships. Partner's Capital Account Analysis 14 Self-employment earnings (loss) Beginning capital account . . . $ Capital contributed during the year. . $ Current year net income (loss) . $_ Other increase (decrease) (attach explanation) $_ Withdrawals & distributions . . $C Ending capital account. . . $ 21 U More than one activity for at-risk purposes 22 D More than one activity for passive activity purposes *See attached statement for additional information. M Did the partner contribute property with a built-in gain or loss? J Yos No If "Yes," attach statement. See instructions. Partner's Share of Net Unrecognized Section 704(c) Gain or (Loss) Beginning . . . . . . . . $ Ending . . . . . . . . . $ For IRS Use Only