The partnership agreement of the G&P general partnership states that Gary will receive a guaranteed payment of $12,000, 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 $ 92,000

Gain on sale of land (1231) $ 7,600

Cost of goods sold $ (42,000 )

DepreciationMACRS $ (18,700 )

Employee wages $ (17,300 )

Cash charitable contributions $ (4,500 )

Municipal bond interest $ 3,950

Other expenses $ (3,300 )

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

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

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