Peter wishes to pass his business on to his children, Sheli and Vannesa, and gives each daughter a 5% partnership interest to begin getting them involved. Peter retains the remaining 90% interest. Neither daughter is employed by the partnership, which buys and manages real estate. Peter draws only a $40,000 guaranteed payment for his work for the partnership. Reasonable compensation for his services would be $75,000. The partnership reports ordinary income of $105,000 after deducting the guaranteed payment. Distributive shares for the three partners are tentatively reported as: Peter, $94,500; Sheli, $5,250; and Vannesa, $5,250. Read the requirement. The partnership's ordinary income is Distributive share Peter Sheli Vannesa