Gilroy, a calendar-year tax payer, is a partner in the firm of Adam and Company which has a fiscal year ending June 30. The partnership agreement provides for Gilroy to receive 25% of the ordinary income of the partnership. Gilroy also received a guaranteed payment of $1,000 monthly which is deductible by the partnership. The partnership reported ordinary income of $88,000 for the year ended June 30, 2014, and $132,000 for the year ended June 30, 2015. How much should Gilroy report on his 2014 return as total income from the partnership?
a. $25,000
b. $30,500
c. $34,000
d. $39,000
Answer: C
Tax
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