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The AB partnership is in the real estate development business. The partnership recently was involved in a lawsuit concerning the legal title to a parcel

The AB partnership is in the real estate development business. The partnership recently was involved in a lawsuit concerning the legal title to a parcel of land it acquired. The partnership paid partner B, who is a lawyer, a $5,000 fee to represent it in the legal proceedings. How should the partnership and B treat the payment for tax purposes?

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