Answer: C MACRS depreciation expense
Step-by-step explanation:
Items which are reported seprately on a partnership's tax return for the partners to accurately determine their individual tax liability. Short-term capital gains, charitable contributions, and guaranteed payments are all examples of separately stated items.
MACRS depreciation expense, on the other hand, is a part of the partnership's regular business operation and is not separately stated. Depreciation is a non-cash expense that reduces the value of an asset over its useful life and is reflected in the partnership's overall income and expenses. It is not considered a separate activity or transaction that affects the partners' tax liability for the year.