Luisa,Lois,and Lucy Operate a Boutique Named Mariabelle's Dreams What Amount Will Mariabelle's Dreams Report to Luisa as Her

Multiple Choice

Luisa,Lois,and Lucy operate a boutique named Mariabelle's Dreams.Based on advice from Luisa's sister,an accountant,the three form a partnership.Luisa owns 40% and Lois and Lucy each own 30%.For the year,Mariabelle's Dreams reports the following:
$\begin{array}{lr}\text { Sales revenues } & \$ 300,000 \\\text { Short-term capital gains } & 3,000 \\\text { Short-term capital losses } & (7,000) \\\text { Trade and business expenses } & (160,000) \\\text { Investment expenses } & \underline {(1,000) } \\\text { Taxable income } & \underline {\$ 135,000}\end{array}$
What amount will Mariabelle's Dreams report to Luisa as her ordinary income from the partnership?

A) $ 54,000
B) $ 54,400
C) $ 54,800
D) $ 55,600
E) $ 56,000