The partnership agreement of the G&P general partnership states that Gary will receive a guaranteed payment of $11,300, and that Gary and Prudence will share the remaining profits or losses in a 45/55 ratio. For year 1, the G&P partnership reports the following results:

Sales revenue	$	74,200
Gain on sale of land (1231)	$	8,400
Cost of goods sold	$	(29,700	)
DepreciationMACRS	$	(10,600	)
Employee wages	$	(18,400	)
Cash charitable contributions	$	(3,100	)
Municipal bond interest	$	5,500
Other expenses	$	(4,500	)

(Negative amounts should be indicated by a minus sign.)

1. a-1. How much ordinary income (loss) is allocated to Gary for the year?

2. a-2. Compute Garys share of separately stated items to be reported on his year 1 Schedule K-1, including his self-employment income (loss).

b. Compute Garys share of self-employment income (loss) to be reported on his year 1 Schedule K-1, assuming G&P is a limited partnership and Gary is a limited partner.

Description Total Amount Allocated to Gary Separately Stated Items on Schedule K-1