The XYZ Partnership reports the following items during 2022:

Calculate ordinary income (or loss) by completing page 1 of Form 1065, and complete Schedule K (Partners’ Shares of Income, Credits, Deductions, etc.). Leave spaces blank on Form 1065 if information is not provided.

Data From  Form 1065

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Sales $400,000 Cost of goods sold 120,000 Dividends all qualified 6,000 Interest income on certificate of deposit held as an investment 2,000 Tax-exempt interest 1,500 Salaries to employees 130,000 Federal employment taxes 9,000 Rental expense 5,000 Guaranteed payments to partners 40,000 Net long-term capital gain 12,000 Net short-term capital loss 5,000 Repairs 3,000 MACRS depreciation 10,000 Section 1231 losses 8,000 Charitable contributions 3,500 Amortization of organizational expenditures 1,000 Research and experimentation credit 2,500 Cash distributions to partners 20,000