Guaranteed Payments: Pam and Susan own the PS Partnership. Pam takes care of daily operations and receives a guaranteed payment for her efforts. What amount and character of income will each partner report in each of the following independent situations?

A) The PS Partnership reports a 10,000 long term capital gain and no ordinary income. Pam receives a 40,000 guaranteed payment plus a 30% distributive share of all partnership income after deducting guaranteed payment.

B) The PS Partnership reports 80,000 of ordinary income, before considering any guaranteed payment, and a 60,000 Sec. 1231 gain. Pam receives a 35,000 guaranteed payment plus 20% distributive share of all partnership income after deducting the guaranteed payment.

C) The PS Partnership reports 120,000 of ordinary income before considering any guaranteed payment. Pam receives 40% partnership income but no less than 60,000.