Jack and Adam each invested $110,000 cash when they formed the JA Partnership and became equal partners. They agreed that the partnership would pay each partner a 5% guaranteed payment on his $110,000 capital account. Before the two guaranteed payments, current year results were $24,000 of ordinary income and $ 17,000 of long-term capital gain.

Requirement: What amount and character of income will Jack and Adam report for the current year from their partnership?