Problem 8-40 (LO 8-4)

Mabel, Loretta, and Margaret are equal partners in a local restaurant. The restaurant reports the following items for the current year:

Revenue	$	620,000
Business expenses		320,000
Investment expenses		178,500
Short-term capital gains		191,000
Short-term capital losses		(253,200	)

Each partner receives a Schedule K-1 with one-third of the preceding items reported to her. How must each individual report these results on her Form 1040?

Schedule A	$59,500
Schedule D	???????
Schedule E	$100,000