Jim Johnson has 40% interest in Richards and Johnson, LLP. The partnership has the following activity for the year:
Sales $180,000
Cost of Goods Sold $105,000
Guaranteed Payment to Ron Richards $25,000
Depreciation $11,000
Interest Expense $1,000
Tax-Exempt Income $1,500
Health Insurance Premiums for Jim Johnson $700
Health Insurance Premiums for Ron Richards $700
Calculate Jim's share of ordinary income from the partnership. Calculate Jim's share of separately stated items that will appear on his Schedule K-1 from Richards and Johnson, LLP.