Cathy Crafts grants Dan Deputy a franchise to sell cards and gifts. Dan pays Cathy a fee

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Cathy Crafts grants Dan Deputy a franchise to sell cards and gifts. Dan pays Cathy a fee of $1,000 per month plus a percentage of the monthly profits. Dan must purchase his supplies from Cathy and Cathy retains the right to terminate Dan's franchise. What are the tax consequences of this arrangement to Cathy and Dan?

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CCH Federal Taxation Basic Principles 2020

ISBN: 9780808051787

2020 Edition

Authors: Ephraim P. Smith, Philip J. Harmelink, James R. Hasselback

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