Maria and Javier are the equal partners in Marja, a partnership that is a qualifying trade or business. In the current year, Marja generated $350,000 of ordinary income after reporting $500,000 in guaranteed payments to Maria and Javier for their services to Marja ($250,000 each).
a. What is Maria’s and Javier’s qualified business income?
b. How would your answer to part (a) change if Marja had incurred $550,000 of ordinary income after reporting $300,000 in guaranteed payments to Maria and Javier ($150,000 each)?