Question 43 of 75. Molly is a partner in an engineering firm. She is active in the business and serves as the partnership's chief accounting officer. She receives a guaranteed 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 should Molly report this income on her tax return? Self-employment income, reported on Schedule C, Profit or Loss from Business (Sole Proprietorship). O Passive income, reported on Schedule E, Supplemental Income and Loss. Nonpassive income, reported on Schedule E, Supplemental Income and Loss. O Wages, salaries, tips, etc. reported directly on Form 1040.