Mr. Clancy, a lawyer, is a partner in the law firm Ludlum, Clancy, Follet & Associates. Mr. Clancy is one of four equal partners in the partnership.

The partnerships income statement is as follows:

Mr. Clancy withdrew $77,500 from the partnership for his personal living expenses. He has no other source of income, except his partnership income.

REQUIRED

Compute Mr. Clancys taxable income for the year 2022. Determine any federal tax credits Mr. Clancy is eligible for as a result of his participation in the partnership.

Ludlum, Clancy, Follet \& Associates PRoJEcted InCOME STATEMENT for the year ended December 31, 2020