Under the terms of a partnership agreement, Erica is entitled to a fixed annual payment of $10,000 without regard to the income of the partnership. Her distributive share of the partnership income is 10%. The partnership has $50,000 of ordinary income after deducting the guaranteed payment. Erica must include what amount of ordinary income on her individual income tax return for her tax year in which the partnership's tax year ends?

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Erica must include both her fixed annual payment a... View the full answer