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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