Roger,Ellen,Drew and Cindy Are Equal Partners in a Local Pub

Multiple Choice

Roger,Ellen,Drew and Cindy are equal partners in a local pub.The pub reports the following items for the current year: $\begin{array}{lr}\text { Business revenue } & \$ 1,770,000 \\\text { Business expenses } & 1,000,000 \\\text { Investment expenses } & 160,000\end{array}$ 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) $192,500 on Schedule E;$40,000 on Schedule A.
B) $257,667 on Schedule E;$40,000 on Schedule A.
C) $385,000 on Schedule E;$40,000 on Schedule A.
D) $770,000 on Schedule E;$160,000 on Schedule A.