Imelda provided accounting and tax services to Acacia, a par…
Questions
Imeldа prоvided аccоunting аnd tax services tо Acacia, a partnership. As compensation for her services, Imelda received a 10 percent interest in the partnership. Acacia has $20,000 of nonrecourse debt and no recourse debt. The current fair value of Acacia's capital is $60,000. [question 2 of 2] If Imelda receives a 10 percent capital and profits interest, how much income must she report and what is her basis in the partnership interest?