Henry Has a 30% Interest in the HMS Partnership's Capital

Multiple Choice

Henry has a 30% interest in the HMS Partnership's capital, profits, and losses computed after taking into account his guaranteed payment of $40,000. In the current year, HMS reports ordinary income of $30,000 and capital gains of $60,000 before taking into account Henry's guaranteed payment. What is the amount and character of all income or loss that Henry must report as a result of partnership activities?

A) $40,000 guaranteed payment (ordinary income) , $3,000 ordinary loss, $18,000 capital gain
B) $40,000 guaranteed payment (ordinary income) , $15,000 capital gain
C) $40,000 guaranteed payment (ordinary income) , $9,000 ordinary income, $6,000 capital gain
D) $13,000 guaranteed payment (ordinary income) , $6,001 ordinary income, $38,820 capital gain