D and C are partners in the DC partnership. Under the terms of the partnership agreement, D is to receive 25% of all partnership income or loss, plus a guaranteed payment of $80,000 per year. In the 20X1 tax year, DC had $72,000 of ordinary income before any deduction for D's payment. What income (loss) will D report on a 20X1 tax return, assuming that D materially participates in partnership activities?

A

$62,000 guaranteed payment, $18,000 partnership income

B

$80,000 guaranteed payment, $0 partnership income

C

$80,000 guaranteed payment, $2,000 partnership ordinary loss

D

$80,000 guaranteed payment, $18,000 partnership income