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Alice Milne grants Christopher Carroll a franchise to sell homemade honeys. Christopher pays Alice 20% of all revenue. Sales for 2021 were $740,000. a. How

Alice Milne grants Christopher Carroll a franchise to sell homemade honeys. Christopher pays Alice 20% of all revenue. Sales for 2021 were $740,000.

a. How will Alice treat the payment on her 2021 return (amount and type of income)?

b. How will Christopher treat his payment to Alice on his tax return?

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