Gilroy, a calendar-year taxpayer, is a partner in the firm of
Adams and Company which has a fiscal year ending June 30.
The partnership agreement provides for Gilroy to receive 25% of
the ordinary income of the partnership. Gilroy also receives a
guaranteed payment of $1,000 monthly which is deductible by
the partnership. The partnership reported ordinary income of
$88,000 for the year ended June 30, 2012, and $132,000 for the
year ended June 30, 2013. How much should Gilroy report on
his 2012 return as total income from the partnership?