Research Problem 2. Crane is a partner in the Cardinal Partnership. A dispute arose with the partnership regarding Crane’s share of current earnings. The partnership contends that the amount is $75,000, but Crane believes his share is $100,000.

Crane ceased being a partner on November 1. As a result of the dispute, the partnership distributed only $75,000 to Crane. It placed the disputed $25,000 in escrow.

However, Crane’s Schedule K–1 from the partnership included the full $100,000.

Crane believes that the K–1 should include only the $75,000 that is not in dispute.

Is Crane correct? Explain.

Use internet tax resources to address the following questions. Look for reliable websites and blogs of the IRS and other government agencies, media outlets, businesses, tax professionals, academics, think tanks, and political outlets.