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Hay, Straw and Clover Formed the HSC Partnership, Agreeing to Share

Question 52

Multiple Choice

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: 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 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

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