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 $(53,500)$

Depreciation$$MACRS $(15,600)$

Employee wages $(11,100)$

Cash charitable contributions $(5,300)$

Municipal bond interest $5,450$

Other expenses $(5,100)$

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

Problem $20-61$ Part b $($Algo$)$

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. 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?