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Selena reached an agreement with the HIJ Partnership to manage that Society in exchange for a 10% stake in it. According to the accounting books
Selena reached an agreement with the HIJ Partnership to manage that Society in exchange for a 10% stake in it. According to the accounting books of the company, it has a net capital of $ 300,000. The market value of that 10% stake is $ 35,000. What amount (if any) and what type of income (if any) must Selena report on her tax return as a result of her participation in the partnership?
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