Kaylyn Is a 40% Partner in the KKM Partnership

Multiple Choice

Kaylyn is a 40% partner in the KKM Partnership.During the current year, KKM reported gross receipts of $160,000 and a charitable contribution of $10,000.The partnership paid office expenses of $100,000.In addition, KKM distributed $10,000 each to partners Kaylyn and Kristie, and the partnership paid partner Megan $20,000 for administrative services.Kaylyn reports the following income from KKM during the current tax year:

A) $16,000 ordinary income; $4,000 charitable contribution.
B) $8,000 ordinary income; $4,000 charitable contribution.
C) $4,000 ordinary income.
D) $12,000 ordinary income.
E) None of the above.