Peter, a 25% partner in Gold & Stein Partnership, received a $20,000 guaranteed payment in the current year for deductible services rendered to the partnership. Guaranteed payments were not made to any other partner. Gold & Stein’s current- yea r partnership income consisted of:

Net business income before guaranteed payments .......................$80,000

Net long-term capital gains ...................................................................10000

What amount of income should Peter report from Gold & Stein Partnership on his current-year tax return?

a. $37,500 

b. $27,500 

c. $22,500

d. $20,000