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The CD equal partnership is in a highly speculative business in which profits uctuate widely. For the current year the partnership has profits of $80,000

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The CD equal partnership is in a highly speculative business in which profits uctuate widely. For the current year the partnership has profits of $80,000 of which $48,000 is ordinary income and $32,000 is long term capital gain. C and D share profits and losses equally unless otherwise provided. C renders services to the partnership which are continuous, related to the function of the partnership and not in the nature of a capital expenditure

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