Martin and Joe Are Equal Partners in Ferrell Company In Addition to His Ferrell Company Earnings, Martin Has Dividend

Multiple Choice

Martin and Joe are equal partners in Ferrell Company. For the current year, Ferrell Company reports the following items of income and expense:
?
$$\begin{array} { l r } \text { Sales revenues } & \$ 500,000 \\\text { Long-term capital gains } & 14,000 \\\text { Short-term capital losses } & ( 10,000 ) \\\text { Trade and business expenses } & ( 200,000 ) \\\text { Limited partnership loss } & ( 50,000 ) \\\text { Taxable income } & \$ 254,000\end{array}$$
In addition to his Ferrell Company earnings, Martin has dividend income of $25,000 and a $10,000 loss from the sale of land held as an investment for 3 years. Martin's adjusted gross income is:

A) $162,000
B) $167,000
C) $172,000
D) $187,000
E) $192,000