During 2016, the Tastee Partnership reported income before guaranteed payments of $92,000. Stella owns a 90% profits interest and works 1,600 hours per year in the business. Euclid owns a 10% profits interest and performs no services for the partnership during the year. For services performed in 2016, Stella receives a salary of $6,000 per month. Euclid withdrew $10,000 from the partnership during the year.

If required, round your answers to the nearest dollar.

a. What is the amount of guaranteed payments made by the partnership during 2016?

b. How much is the partnerships ordinary income after any deduction for guaranteed payments?

c. For 2016, how much income will Stella and Euclid report?

Stella: $___________

Euclid: $___________