Kristin is a partner in a law firm. She is guaranteed a payment of $50,000 each year without regard to the firm's profits or losses. Assuming the payment is reported correctly on her Schedule K-1 (Form 1065), how will Kristin's basis in the partnership be impacted? As other income, reported on Schedule 1, Additional Income and Adjustments to Income. Guaranteed payments do not impact a partner's basis in a partnership. As nonpassive income, reported on Schedule E, Supplemental Income and Loss. As wages, salaries, tips, etc., reported directly on Form 1040. Mark for follow up