Question: A ( a cash method taxpayer ) is an equal partner in the ABCD partnership ( an accrual method taxpayer ) and has a $

A (a cash method taxpayer) is an equal partner in the ABCD partnership (an accrual method taxpayer) and has a $10,000 outside basis in her partnership interest. A provides regular, ongoing services that are not related to the primary business activities of the partnership. Before any of the transactions described below, the partnership has $10,000 of net ordinary income from business operations each year. What result in the following alternatives?(a)The partnership will pay A $2,000 per year for three years for his services.(b)What result in (a), above, if the compensation payments are made on January 31 of the year following accrual?(c)How would your answer to (a) change if the partnership generated no income from business operations for the year but instead generated $10,000 of long-term capital gains?

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