Wayne Owns a 25% Interest in the Capital and Profits

Multiple Choice

Wayne owns a 25% interest in the capital and profits of Emerald Company (a calendar year partnership) .For tax year 2012, the partnership earned revenue of $900,000 and had operating expenses of $560,000.During the year, Wayne withdrew from the partnership a total of $90,000. He also invested an additional $20,000 in the partnership.For 2012, Wayne's gross income from the partnership is:

A) $70,000.
B) $85,000.
C) $90,000.
D) $110,000.
E) None of the above.