Ward has a 50% interest in the PW partnership. In the current year, the partnership had sales of $500,000, cost of goods sold of $340,000, and $90,000 in operating expenses. Ward withdrew $30,000 from the partnership during the year, but his partner did not withdraw anything.

a.	Ward is not required to recognize any income from the partnership.
	b.	Ward must report $30,000 gross income from the partnership for the year.
	c.	Ward must report $35,000 gross income from the partnership.
	d.	Ward must recognize $50,000 income from the partnership [.50 ($500,000 - $340,000 - $90,000 - $30,000) + $30,000].
	e.	The partnership is taxable on $70,000 for the year and Ward must include $30,000 in gross income.