Krystin is a 25% partner in Andrew's Pet Grooming. Under the terms of the partnership agreement, she is to receive 25% of the partnership income, but no less than $10,000. If the grooming shop's net income for the year is $50,000, what amount can the partnership deduct as a guaranteed payment to Krystin? (a) $0 (b) $2,500 (c) $10,000 (d) $12,500

Jack is a 20% partner in a service partnership. His outside basis is $80,000 on January 1st of 2021. Included in that amount is a $15,000 share of partnership liabilities. During the year, Jack is allocated the following amounts: Long-term capital gain: $2,000 Ordinary income of the partnership: $10,000 A guaranteed payment: $60,000 At the end of the year, the partnership relieves him of $5,000 of partnership liabilities and gives him a cash distribution of $40,000. These payments are intended as a partial liquidation of his partnership interest. What is the amount of Jack's outside basis after all of these events? DO NOT USE COMMAS OR DOLLAR SIGNS IN YOUR ANSWER!! Answer: 99000

Jackie is a 50% partner in The Lunch Box. She is to receive a guaranteed payment of $30,000. If the partnership's ordinary income before deducting the guaranteed payment is $70,000, what is Jackie's distributive share?    $15,000  $20,000  $30,000  $35,000

Mary is a 25% partner. She is to receive 25% of the partnership income, but no less than $10,000.  If the net income of the partnership is %50,000, what amount can the partnership deduct as a guaranteed payment to Mary? (a) $0, (b) $2,500, (c) $10,000, (d) $12,500