Luisa, Lois, and Lucy operate a boutique named Mariabelle's Dreams. Based on advice from Luisa's sister, an accountant, the three form a partnership. Luisa owns 40% and Lois and Lucy each own 30%. For the year, Mariabelle's Dreams reports the following:
Sales revenues$300,000
Short-term capital gains3,000
Short-term capital losses(7,000)
Trade and business expenses(160,000)
Investment expenses (1,000)
Taxable income$135,000
What amount will Mariabelle's Dreams report to Luisa as her ordinary income from the partnership?
a. $54,000
b. $54,400
c. $54,800
d. $55,600
e. $ 56,000