Sam is a tax attorney at RBN LLP law firm. She is paid a salary of $190,000 per year in addition to a 5% share of profits of the LLP after deduction of all expenses. In 2017, Sam received her salary and an allocation of $300,000 of net profit, which she is allowed to withdraw from her capital account after the closing of the partnershiips books in February 2018. Both she and the LLC are cash method taxpayers, What is the amount and character of Sams 2017 income?

a) Wages of $190,000, reportable on Form W-2; distributive profit share of $300,000, reportable on Schedule K-1.

b) Guaranteed payment of $190,000 and distributive profit share of $300,000, both reportable on Schedule K-1.

c) Wages of $490,000, reportable on Form W-2.

d) Guaranteed payment of $190,000 reportable on Schedule K-1; distributive profit share of $300,000 not reportable until 2018.