Martin and Joe Are Equal Partners in Ferrell Company

Multiple Choice

Martin and Joe are equal partners in Ferrell Company. For the current year, Ferrell Company reports the following items of income and expense: In addition to his Ferrell Company earnings, Martin has other income of $35,000. Included in the $35,000 is a $10,000 loss from the sale of land held as an investment. Martin's adjusted gross income is:

A) $162,000
B) $167,000
C) $172,000
D) $187,000
E) $192,000