In the Current Year, the POD Partnership Received Revenues of $200,000

Multiple Choice

In the current year, the POD Partnership received revenues of $200,000 and paid the following amounts: $50,000 in rent and utilities and $20,000 as a distribution to partner Olivia. In addition, the partnership earned $6,000 of long- term capital gains during the year. Partner Donald owns a 50% interest in the partnership. How much income must Donald report for the tax year?

A) $68,000 ordinary income.
B) $78,000 ordinary income.
C) $65,000 ordinary income; $3,000 of long-term capital gains.
D) $75,000 ordinary income; $3,000 of long-term capital gains.