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Taxpayer had a one-fourth ownership interest in Partnership. The partnership agreement provided that, as compensation for his services, it would pay Taxpayer one-fourth of the
Taxpayer had a one-fourth ownership interest in Partnership. The partnership agreement provided that, as compensation for his services, it would pay Taxpayer one-fourth of the partnership income. However, in no event would it pay him less than $50,000. During the year, the partnership earned $100,000 of income. What are the consequences to Taxpayer and the partnership?
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