Hay,Straw and Clover formed the HSC Partnership,agreeing to share profits and losses equally.Clover will manage the business for which he will receive a guaranteed payment of $30,000 per year.Cash receipts and disbursements for the year were as follows
What is Clover's share of the partnership's ordinary income and guaranteed payment?
A) Ordinary income,$30,000; Guaranteed payment,$10,000.
B) Ordinary income,$20,000; Guaranteed payment,$10,000.
C) Ordinary income,$30,000; Guaranteed payment,$30,000.
D) Ordinary income,$20,000; Guaranteed payment,$30,000.
Correct Answer:
Verified
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