During 2017, the Tastee Partnership reported income before guaranteed payments of $92,000. Stella owns a 90% profits

Question:

During 2017, the Tastee reported income before guaranteed payments of $92,000. Stella owns a 90% profits interest and works 1,600 hours per year in the business. Euclid owns a 10% profits interest and performs no services for the during the year. For services performed in 2017, Stella receives a "salary" of $6,000 per month. Euclid withdrew $10,000 from the during the year.
a. What is the amount of guaranteed payments made by the during 2017?
b. How much is the partnership's ordinary income after any deduction for guaranteed payments?
c. How much income will Stella report? Euclid?
Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...