DIP Partnership reports ordinary income (before guaranteed payments) of $120,000, rent expense of $40,000, and interest income of $4,000 for the year. In addition, DIP paid guaranteed payments to partner Percy of $20,000. If Percy owns a 40% capital and profits interest, how much income will he report for the year and what is its characterA) $24,000 ordinary income.B) $24,000 ordinary income, $1,600 interest income, $20,000 guaranteed payment.C) $25,600 ordinary income.D) $32,000 ordinary income, $1,600 interest income.E) $32,000 ordinary income, $1,600 interest income, $20,000 guaranteed payment.