Meg and Abby are equal partners in the AM​ Partnership, which earns​ $40,000 ordinary​ income,

$6,000​ long-term capital gain​ (LTCG), and​ $2,000 Sec. 1231 loss during the current year. What is the amount and character of income that must be reported on​ Abby’s tax return for this​ year’s partnership​ operations?

A.

​$22,000 ordinary income

B.

​$19,000 ordinary​ income, $3,000 LTCG

C.

​$20,000 ordinary​ income, $3,000​ LTCG, $1,000 Sec. 1231 loss

D.

​$23,000 ordinary​ income, $1,000 Sec. 1231 loss

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