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What amount of Zuri's partnership income, reported to her on the Schedule K-1 (Form 1065), is subject to self-employment tax? (Note: Due to rounding, amounts presented in the answer choices may not precisely match the amounts generated in every BlockWorks return. Differences of $1 are not uncommon.) $0 $28,257 $30,000 $32,258

Zuri and Kelsey are friends and neighbors who decided to start a small business. They wanted to earn extra income, and a primary goal for each of them was to work in a business that would give them the freedom to set their own hours. They determined that there was a demand for commercial cleaning services in their area, and they liked the idea that this type of business offered revenue potential without requiring a large, up-front investment. Zuri and Kelsey agreed to form a partnership and split all the profits equally, and to assume equal responsibility for all liabilities. They agreed that there would be no guaranteed payments. At the time of formation, Kelsey contributed $900 in cash in exchange for her 50% profitsharing interest. Zuri also contributed $900 in cash in exchange for her 50% profit-sharing interest. They worked together to create a business page on a social networking site, and they each spent time networking and gaining clients prior to the formation of the partnership. Zuri performs ongoing, basic bookkeeping services for the business. The business uses the cash method of accounting. The partnership does not have any international activities. Zuri and Kelsey have each signed statements (which they timely provided) saying they do not require a Schedule K-3, nor will they file Form 1116, Foreign Tax Credit, with their 2022 individual income tax return. Income and Expenses In 2022 , the sales revenue for the services provided by the partnership totaled $68,000. Kelsey and Zuri performed all the cleaning services themselves. They did not have any employees. No payments were made to independent contractors or vendors that required them to file a Form 1099. Detailed information about their expenses is provided in the income statement shown below. Distributions During the year, the partnership made total cash distributions of $60,000, with each partner receiving a cash distribution of $30,000. Financial Statements Zuri prepared the partnership's income statement and balance sheet for the year ending December 31,2022 . No assets were placed in service during the year. The income statement and balance sheet for this business are shown below

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