Problem
On January 2, of the current year, Mrs W sold 50% of her business to her daughter, L. The resulting partnership had a profit of $50,000 for the tax year. Capital is a material income-producing factor. Mrs. W PERFORMED SERVICES FOR WHICH $10,000 WAS reasonable compensation. L performed no services. What is the maximum amount if income that L can report from the partnership for the year?
$20,000
$25,000
$30,000
$35,000.
The response should include a reference list. Using one-inch margins, Times New Roman 12 pnt font, double-space and APA style of writing and citations.