Joe and Jerry are each partners in a partnership (J&J Partnership). According to their partnership agreement, all income is to be allocated equally between them, but in no situation shall the allocation to Joe be less than $75,000 per year (i.e. Joe receives a minimum guaranteed payment of $75,000 each year). This year J&J generated $107,200 net profit. Compute J&Js taxable income for the year and each partners distributive share of that income.

use Rev Ruling 66-95