infformation for Questions 1-2: Jim is a 20% general partner in Partnership XYZ. For the current year, Partnership XYZ reported the following items:

OrOrdinary income (total) $500,000

ShorShort-term capital gain (total) 40,000

GuaGuararanteed payment to Jim 25,000

DistrDistribution to Jim 10,000

1. Jims adjusted gross income on his individual tax return for the current year is:

a. $143,000.

b. $133,000.

c. $118,000.

d. $108,000.

e. none of the above.

2. Jims self-employment income (subject to the self-employment tax) on his individual tax return for the current year is:

a. $0.

b. $100,000.

c. $125,000.

d. $135,000.

e. none of the above.