$1.$ In exchange for a contribution of $$263,000$ each, A and B each receive a $50\%$ interest in the capital and losses of the newly formed ABC Partnership. Profits of the partnership are to be divided $45\%$ to A$,45\%$ to B$,$ and $10\%$ to C$.$

A$.$ When the partnership is formed there is a $$52,600$ guaranteed payment to C that will be deductible by the partnership.

B$.$ When the partnership is formed C recognizes income of $$52,600.$

C$.$ There is no tax consequence to C when the partnership is formed.

D$.$ A and B$$s capital accounts are each reduced by $$26,300.$