James and Jerry Are Equal Partners in JJ Partnership

Multiple Choice

James and Jerry are equal partners in JJ partnership.James works full-time in the business and receives a $40,000 guaranteed salary from the partnership.Jerry is to receive the first $20,000 of profits before the remainder is divided equally between James and Jerry.If the accounting income before either of these payments is $30,000,what is the amount of income or loss allocated to Jerry?

A) 0
B) $10,000
C) ($5,000)
D) ($10,000)