This year, the Tastee Partnership reported income before guaranteed payments of $147,500. Stella owns a 40% profits interest and works 1,750 hours per year in the business. Euclid owns a 60% profits interest (with a basis of $30,000 at the beginning of the tax year) and performs no services for the partnership during the year. For services performed during the year, Stella receives a "salary" of $7,375 per month. Euclid withdrew $14,750 from the partnership during the year as a normal distribution of cash from Tastee (i.e., not for services).

a.What is the amount of guaranteed payments made by the partnership this year?

$

b.How much is the partnership's ordinary income after any permitted deduction for guaranteed payments?

$

c.How much income will Stella report?

$

d.How much income will Euclid report?

$