the rest of B) states the partnership accrued the payment in 1997 but did not make payment until April 1, 1998. Whats the result?

PROBLEM Taxing Partnership Operations- Transactions between Related Parties Code References: SS 267(a)(1) and (2); 267(d)(1)- (4); 267(e); 707; 263(a); and 704(a) Regulations: SS 1.701-1; 1.707-1; and 1.267(b)-1(b) Reading Assignment: Student Edition (Vol. 2) 19 11.01; 11.02; 11.03; 11.04; 11.05; and 11.06 1. QUESTIONS A is a partner in the ABC partnership. The partnership leased a building from A at an annual rent of $20,000 (its fair rental value). A continued to depreciate the building. a. How should the transaction be characterized? b. Assume that the ABC partnership is on the accrual method of account ing, that A is a cash method taxpayer, that A and the partnership are calendar year taxpayers, and that the payment is a $ 707(a) payment. 8P-1 PROBLEM Taxing Partnership Operations- Transactions between Related Parties Code References: SS 267(a)(1) and (2); 267(d)(1)- (4); 267(e); 707; 263(a); and 704(a) Regulations: SS 1.701-1; 1.707-1; and 1.267(b)-1(b) Reading Assignment: Student Edition (Vol. 2) 19 11.01; 11.02; 11.03; 11.04; 11.05; and 11.06 1. QUESTIONS A is a partner in the ABC partnership. The partnership leased a building from A at an annual rent of $20,000 (its fair rental value). A continued to depreciate the building. a. How should the transaction be characterized? b. Assume that the ABC partnership is on the accrual method of account ing, that A is a cash method taxpayer, that A and the partnership are calendar year taxpayers, and that the payment is a $ 707(a) payment. 8P-1