Yee manages Huang real estate, a partnership in which she is also a partner. She receives 40% of all partnership income before guaranteed payments, but no less than $80,000 per year. In the current year, the partnership reports $100,000 in ordinary income. What is Yee's distributive share and her guaranteed payment?
A.
| Distributive Share | Guaranteed Payment |
| $40,000 | $40,000 |
B.
| Distributive Share | Guaranteed Payment |
| $40,000 | $80,000 |
C.
| Distributive Share | Guaranteed Payment |
| 0 | $80,000 |
D.
| Distributive Share | Guaranteed Payment |
| $40,000 | 0 |
Answer: A
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