Identify which of the following statements is true.

Question

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A) It may be necessary for the partnership to capitalize a partner's guaranteed payment, especially if it is related to the partner's capital investment or the payment is for services that the partner would normally provide to the partnership.
B) A partner who performs services for a partnership is usually not considered an employee of the partnership since partners are considered owners and their compensation is based on the profits of the partnership.
C) Guaranteed payments are ordinary income to the recipient and are taxed as such on their personal income tax returns.

Identify Which of the Following Statements Is True