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Question: Lydia and Ellen own the LE Partnership. Lydia takes care of daily operations and receives a guaranteed payment for her efforts. What amount and character of income will each partner report in each of the following independent situations?a)The LE Partnership has no ordinary income and reports a $100,000 short-term capital gain. Lydia receives a $40,000 guaranteed payment plus a 40% distributive share of all partnership income after deducting the guaranteed payment.b)The LE Partnership reports $160,000 of ordinary income before considering any guaranteed payment. Lydia receives 60% of partnership income but not less than $110,000.
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