Debbie and Betty operate the D & B partnership. Betty, a 50 percent partner, receives a guaranteed payment of $10,000 for her services in operating the partnership. The partnership has income before the guaranteed payment of $5,000. What is the taxable income Debbie and Betty must each report from the partnership for the year?

Debbie should report income of $__________.

Betty should report income of $__________.

 

Net loss = income - guaranteed payment 

 

= 5000- 10000

=-5000

 

Share of loss = 50%*-5000 = $2500

Debbie should report income of $

 

Since Debbi's guaranteed payment is more than the $25000 share of...