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Select the best answer On January 2, 20X1, Mrs. W sold 50% of her business to her daughter, L. The resulting partnership had a profit
Select the best answer On January 2, 20X1, Mrs. W sold 50% of her business to her daughter, L. The resulting partnership had a profit of $50,000 for the tax year. Capital is a material income-producing factor. Mrs. W performed services for which $10,000 was reasonable compensation. L performed no services. What is the maximum amount of income that L can report from the partnership in 20X1? O A. $20,000 O B. $25,000 C. $30,000 0 D. $35,000 Submit Answers
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