Under a partnership agreement, Sarah is tot receive 25% of the partnership income but not less than 12,000. The partnership net income for this year was 32,000. What amount can the partnership deduct as a guaranteed payment, and what amount of income is Sarah required to report on her individual tax return

Partnership Deduction - $4000 Sarah Income12,000

Partnerhsip Deduction - $4000 Sarah income 20,000

Partnerhsip deduction 12,000 - Sarah income 8,000

Partnership Deduction 12,000 Sarah income 20,000