Q is a 20 percent member in Lynn Properties, LLC. Because she is more involved than the other members in the LLC's activities, she receives a guaranteed payment from the LLC in the amount of $25,000 per year. She also receives 20% of remaining LLC profits after payment of the guaranteed payment. For the current year, Lynn Properties reported net income of $75,000 after deducting the $25,000 guaranteed payment to Q. How much income will Q report on her individual tax return from Lynn Properties, LLC?
a. $40,000.
b. $25,000.
c. $20,000.
d. $0.