Michelle is a 40% general partner in the calendar year, cash basis MGM Partnership. The partnership received $100,000 income from services and paid the following other amounts:

Rent expense $10,000 Salary expense to employees 30,000 Payment to Michelle for services, per the partnership agreement 20,000 Distributions to partners, Graham and Michael 12,000 Payment to 40% cash basis partner Michael for tax and accounting services 8,000 How much is Michelles adjusted gross income increased as a result of the above items? a. $8,000. b. $12,800. c. $32,000. d. $32,800. e. $40,800.