Carol Owns 40 Percent of CJ Partnership

Multiple Choice

Carol owns 40 percent of CJ Partnership.The partnership reports $170,000 of revenue, $60,000 cost of goods sold, and $70,000 of other expenses that include a $2,000 charitable contribution and a $5,000 Section 179 deduction.CJ Partnership also paid $1,500 of doctor bills for Carol, What is the ordinary business income reported on line 1 of Carol's Schedule K-1?

A) $40,000
B) $20,300
C) $18,800
D) $16,000