Question: The TUV Partnership is considering two compensation schemes for Tracy, the partner who runs the business on a daily basis. Tracy can be given a

The TUV Partnership is considering two compensation schemes for Tracy, the partner who runs the business on a daily basis. Tracy can be given a $10,000 guaranteed payment, or she can be given a comparably larger distributive share (and distribution) so that she receives about $10,000 more each year. From the standpoint of when the income must be reported in Tracy’s tax return, are these two compensation alternatives the same?

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