Choice "C" is correct. Guaranteed payments to partners are deductible in arriving at the partnership's ordinary income. Ordinary income is the "taxable income" of the partnership excluding all items required to be separately-stated. Charitable contributions, dividend income, and capital losses are all separately-stated items.Choice "d" is incorrect. Charitable contributions are not deducted to arrive at ordinary income. They are a separately stated item.
Choice "a" is incorrect. Dividend income is not deducted to arrive at ordinary income. It is a separately stated item.Choice "b" is incorrect. Net short-term capital losses are not deducted to arrive at ordinary income. They are a separately stated item.
