Question: Cara, a CPA, established an accounting system for the ABC Partnership and, in return for her services, received a 10% profits interest (but no capital

Cara, a CPA, established an accounting system for the ABC Partnership and, in return for her services, received a 10% profits interest (but no capital interest) in the partnership. Her usual fee for the services would be approximately $20,000. No sales of profits interests in the ABC Partnership occurred during the current year. What tax issues should Cara and the ABC Partnership consider with respect to the payment made for the services?

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