Molly Is a 30% Partner in the MAP Partnership

Multiple Choice

Molly is a 30% partner in the MAP Partnership. During the current tax year, the partnership reported ordinary income of $200,000 before any permitted deduction for guaranteed payments and distributions to partners. The partnership made an ordinary cash distribution of $20,000 to Molly, and paid guaranteed payments to partners Molly, Amber, and Pat of $20,000 each ($60,000 total guaranteed payments) . How much will Molly's adjusted gross income increase as a result of the above items?

A) $36,000
B) $42,000
C) $60,000
D) $62,000
E) $80,000