Rochelle is a partner in Megawatt Partnership. For 2015, her schelule k-1 from the partnership reported the following share of partnership items:

Ordinary income $25000

Section 1231 loss (3000)

Nondeductible expense 1000

Cash distribution 5000

a) Calculate the net impact of the above items on Rochelle's 2015 taxable income.

b) Assume that Rochelle's marginal tax rate is 35 %. Calculate her 2015 after tax cash flow as a result of ther interest in Magawatt.