The partnership agreement of the G&P general partnership states that Gary will receive a guaranteed payment of $14,100, 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	$ 91,500
Gain on sale of land (1231)	7,500
Cost of goods sold	(53,500)
DepreciationMACRS	(15,600)
Employee wages	(11,100)
Cash charitable contributions	(5,300)
Municipal bond interest	5,450
Other expenses	(5,100)

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

Ordinary income (loss)

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

Description Total AmountAllocated to GarySeparately Stated Items on Schedule K-1:

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.

c. What do you believe Gary's share of self-employment income (loss) to be reported on his year 1 Schedule K-1 should be, assuming G&P is an LLC and Gary spends 2,000 hours per year working there full time?