Rhonda has a 30% interest in the capital and profits of the ABC Partnership. In the first year of the partnership, 2022, it earned $150,000. However, the partners agreed that nothing would be distributed until the end of March 2023. The distributions were to be delayed because it was unclear as to whether business conditions would remain good in 2023. Things were going well in 2023 and, therefore, the partnership distributed $30,000 to Rhonda at the end of March. The partnerships income for 2023 was $60,000. Rhonda must recognize $30,000 of gross income in 2022 and $18,000 in 2023.

True or False.

Please explain.