LKX Partnership provided their tax preparer information for its partnership return for the current tax year. LKX is not in the real estate business and does not provide substantial services (maid service, etc.) primarily for the convenience of its tenants. The information included the following items:

Gross receipts Portfolio taxable interest Portfolio tax-exempt interest Dividends Net rental real estate income Cost of goods sold Salaries Employee benefit program Taxes and licenses Liability insurance Other business deductions Section 179 expense deduction Charitable contributions Investment expenses

This is a three-part question.

Question 1:What is the ordinary business income for LKX Partnership? Question 2:What is the total amount (if any) of separately stated income items on Schedule K (Form 1065)? Note that each partner's shares of these items is separately

stated on their Schedule K-1 (Form 1065). Question 3:What is the total amount (if any) of separately stated deduction items on Schedule

K (Form 1065)? Note that each partner's shares of these items will be separately stated on their Schedule K-1 (Form 1065).

a) $141,000; $ 8,000; $13,700

b) $128,500; $19,000; $12,200

c) $104,000; $ 8,000; $11,700

d) $ 88,500; $20,500; $ 8,700