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The correct answer is D.A. Carr will report income(loss) from the partnership.B. The amount of $54,000 is 75% of the ordinary income before deducting the guaranteed

payment.C. Carr will not report $10,000 in ordinary income.D. The $80,000 payment to Den is treated as a guaranteed payment, and it will cause an $8,000loss to the partnership ($72,000 – $80,000). Since Den is to receive 25% of the partnershipincome, Carr must receive 75% of the income or loss. This results in a $6,000 ordinary loss($8,000 × 75%).
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Uploaded by: slydude90

Subject: Accounting, Business

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