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David, Mary, and Bill are equal partners in the DMB Partnership, which uses the accrual method of accounting. All three materially participate in the business. DMB reports financial accounting income of $270,000 for the current year. The partnership used the following information to determine financial accounting income.

Operating profit (excluding the items listed below)	$177,500
Rental income	23,000
Interest income:
Municipal bonds (tax-exempt)	20,000
Corporate bonds	2,500
Dividend income (all from less-than-20%-owned domestic corporations)	16,000
Gains and losses on property sales:
Gain on sale of land held as an investment (contributed by David six
years ago when its basis was $5,000 and its FMV was $12,000)	40,000
Long-term capital gains	38,000
Short-term capital losses	8,000
Sec. 1231 gain	8,000
Unrecaptured Sec. 1250 gain	51,000
Depreciation:
Rental real estate	16,000
Machinery and equipment	21,000
Interest expense related to:
Mortgages on rental property	20,000
Loans to acquire municipal bonds	1,000
Guaranteed payments to David 40,000 Low-icome housing expenditures qualifying for credit 18,000
A. What is DMB's financial accounting income? B. What is DMB's partnership taxable income? C. What is DMB's ordinary income (loss)? D. What are DMB's separately stated items?

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