Question: A has one-fourth and B has 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 $235,000.00 Returns and allowances $10,000.00 Opening inventory $50,000.00 Purchases $50,000.00 Cost of labor and supplies $105,000.00 Closing inventory $61,000.00 Royalties received for use of a patent $1,100.00 salaries $26,000.00 Guaranteed payments to partners ($8,400 each) $16,800.00 Rent paid $17,000.00 Interest expense on business debt (other than payments to the patents) $550.00 Taxes $8,500.00 Bad debt written off $1,000.00 Repairs $3,000.00 Depreciation $2,470.00 Light, postage, stationery, etc $1,680.00 Net long-term capital gain $600.00 Dividends $200.00

Compute the partnership income and partner's distributive shares of items that are required to be seperately stated.