Mr. and Mrs. Barnes own a fast-food restaurant that generates $160,000 average annual income. The couple wants

Question:

Mr. and Mrs. Barnes own a fast-food restaurant that generates $160,000 average annual income. The couple wants to shift some of this income to their two children, ages 19 and 22. Can Mr. and Mrs. Barnes manage their restaurant as a family partnership and give each child a 25 percent interest?

Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...