HTH Partnership has four general partners, no limited partners, and three employees. During the current tax year, HTH provided the following to partners and employees:

$5,000 in cash payments to each partner for services to HTH; this is a fixed payment specified in the partnership agreement to be received each year

$1,000 in cash distributions (not in excess of basis) to each partner for Christmas

$8,000 in annual wages to each employee

$1,500 in health insurance paid for each partner; this again is specified in the

partnership agreement

$1,500 in health insurance paid for each employee

What amount of guaranteed payments is deducted by HTH Partnership on Form 1065 for the current tax year?

a) $58,500 b) $26,000 c) $32,000 d) $36,000