19.Vincent has a one-third interest in the Sayles Partnership. During the year, Vincent received a $16,000 guaranteed payment, which was deductible by the partnership, for services rendered to Sayles. Sayles reported operating loss of $70,000 before the guaranteed payment. What is (are) the net effect(s) of the guaranteed payment?

I. The guaranteed payment decreases Vincents tax basis in Spano by $16,000. II. The guaranteed payment increases Vincent's ordinary income by $16,000.

Group of answer choices

a)I only

b)II only

c)Both I and II

d)Neither I and II