During 2017, the Tastee Partnership reported income before guaranteed payments of $137,000. Stella owns a 70% profits interest and works 1,800 hours per year in the business. Euclid owns a 30% profits interest and performs no services for the partnership during the year. For services performed in 2017, Stella receives a salary of $6,850 per month. Euclid withdrew $13,700 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 2017? $

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

c. For 2017, how much income will Stella and Euclid report? Stella: $ Euclid: $