Water Cycle is a company with three (3) owners, legally organized as a partnership and its partners own a one-third interest each. The entity has selected to be taxed as a company. During 2021, the entity generated gross income of $1,500,000, incurred operating expenses of $200,000, and cost of goods sold of $400,000. Partner A is the managing partner. Partner B and Partner C are limited partners. Partner A has a guaranteed payment of $25,000 per year. Meanwhile, Partner B has a guaranteed payment of $50,000. Using only the data presented above, determine: What is the net operating income for the partnership in 2021? Explain who taxes the net operating income of the company. Compute the Federal Tax for Self-Employment of Partner A. Compute the Federal Tax for Self-Employment of Partner B.