Uga Dog, Smokey Vol, and Aubie Tiger have been lifelong friends. In January, 20XX, Uga, Smokey, and Aubie formed South LLC for their growing sports memorabilia business. Each member contributed $35,000 cash to start the business as one third members. South LLC 123 Education Lane College, TN 37996 FEIN: 36-6342571

Payment to be rendered to Aubie Tiger for accounting services performed through December 31, 20XX, in the amount of $12,000. After reviewing the payment document to Aubie Tiger, which statement is most correct:

I have concluded that this payment is not deductible by South LLC and not subject to self-employment tax by Augie.

I have concluded that this payment is deductible by South LLC and not subject to self-employment tax by Aubie.

I have concluded that this payment is not deductible by South LLC and is subject to self-employment tax by Aubie.

I have concluded that this payment is deductible by South LLC and is subject to self-employment tax by Aubie.