During 2016, the Tastee Partnership reported income before guaranteed payments of $259,500. Stella owns a 50% profits interest and works 1,710 hours per year in the business. Euclid owns a 50% profits interest and performs no services for the partnership during the year. For services performed in 2016, Stella receives a salary of $12,975 per month. Euclid withdrew $25,950 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? $

Hide FeedbackShow All Feedback Check My Work Feedback Post Submission Feedback Solution

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

Hide FeedbackShow All Feedback Check My Work Feedback Post Submission Feedback Solution

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