The partnership agreement of the G&P general partnership states that Gary will receive a guaranteed payment of $15,000, 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	$ 82,700
Gain on sale of land (1231)	7,700
Cost of goods sold	(39,200)
DepreciationMACRS	(12,500)
Employee wages	(15,200)
Cash charitable contributions	(3,200)
Municipal bond interest	3,750
Other expenses	(5,300)

Note: Negative amounts should be indicated by a minus sign.

b. Compute Gary's 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.