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William is a general partner in the WST partnership. During the current year, he receives a guaranteed payment of $10,000 for services he provides to

William is a general partner in the WST partnership. During the current year, he receives a guaranteed payment of $10,000 for services he provides to the partnership, and his distributive share of partnership income is $30,000. William is required to pay self-employment tax on the $10,000 guaranteed payment but not on his distributive share of partnership income.

a. True

b. False

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