Henry is a 50% partner in HJ Partnership. This year, the tax form he receives from HJ (Schedule K-1 of Form 1065) shows business income of $40,000. During the year, Henry received a $10,000 distribution from HJ. Assume Henry's basis in the partnership is $20,000.

a.How much must Henry report on his Form 1040 from HJ for the tax year?

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b.Assume HJ is a S corporation. How much must Henry report on his Form 1040 from HJ for the tax year?