Clark sold securities for a $50,000 short-term capital loss during tge current year, but he has no personal capital gains to recognize. The C&L General Partnership, in which Clark has a 50% capital, profits, and loss interest, reported a $60,000 short-term capital gain this year. In addition, the partnership earned $140,000 of ordinary income. Clark's only partner, Lois, agrees to divide the year's income as follows:

Type of Income	Total	Clark	Lois
Short-term capital gain	$60,000	$50,000	$10,000
Ordinary income	$140,000	$50,000	$90,000

Both partners and the partnership use a calendar year-end, and both partners have a 33% marginal tax rate.

a. Have the partners made a special allocation of income that has substantial economic effect?

b. What amount and character of income must each partner report on his or her tax returns?