Ariel,Bob,Candice and Dmitri Are Equal Partners in a Local Ski

Multiple Choice

Ariel,Bob,Candice and Dmitri are equal partners in a local ski resort.The resort reports the following items for the current year: Business revenue $ 1,200,000
Business expenses 750,000
Short-term capital gains 107,000
Short-term capital losses 103,000 )
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) $112,500 income on Schedule E; $1,000 short-term capital gain on Schedule D
B) $1,200,000 income on Schedule E; $107,000 short-term capital gain on Schedule D
C) $300,000 income on Schedule E; $26,750 short-term capital gain on Schedule D
D) $100,000 income on Schedule E; $1,000 short-term capital gain on Schedule D