A has a one-fourth and B a three-fourths interest in a partnership that operates a toy manufacturing company. The partnership files its partnership return on the calendar-year basis. The partnership books disclose the following information for the current calendar year:

Sales $235,000

Returns and allowances 10,000

Opening inventory 50,000

Purchases 50,000

Cost of labor and supplies 105,000

Closing inventory 61,000

Royalties received for use of a patent 1,100

Salaries 26,000

Guaranteed payments to partners (8,400 to each) 16,800

Rent paid17,000

Interest expense on business debt ( other than

payments to partners) 550

Taxes 8,500

Bad debt written off 1,000

Repairs3,000

Depreciation2,470

Light, postage, stationery, ect. 1,680

Net long-term capital gain 600

Dividends 200

Compute the partnership income and the partners distributive shares of items that are required to be separated stated.