Ariel,Bob,Candice and Dmitri Are Equal Partners in a Local Ski

Multiple Choice

Ariel,Bob,Candice and Dmitri are equal partners in a local ski resort.The resort reports the following items for the current year: $\begin{array}{lr}\text { Business revenue } & \$ 1,200,000 \\\text { Business expenses } & 750,000 \\\text { Short-term capital gains } & 107,000 \\\text { Short-term capital losses } & (103,00 0) \end{array}$ Each partner receives a Schedule K-1 with one-fourth of the preceding items reported to him/her.How must each individual report these results on his/her Form 1040?

A) $100,000 income on Schedule E;$1,000 short-term capital gain on Schedule D
B) $112,500 income on Schedule E;$1,000 short-term capital gain on Schedule D
C) $300,000 income on Schedule E;$26,750 short-term capital gain on Schedule D
D) $1,200,000 income on Schedule E;$107,000 short-term capital gain on Schedule D