The partnership of Bond and Felton has a fiscal year ending September 30. John Bond files his tax return on a calendar-year basis. The partnership paid Bond a guaranteed salary of $1,000 per month during the calendar year 2011 and $1,500 a month during the calendar year 2012. After deducting this salary the partnership realized ordinary income of $80,000 for the year ended September 30, 2012, and $90,000 for the year ended September 30, 2013. Bond’s share of the profits is the salary paid him plus 40% of the ordinary income after deducting this salary. For 2012, Bond should report taxable income from the partnership of
A. $44,000
B. $50,000
C. $48,500
D. $36,500
