2.    Guaranteed payments made by a partnership to partners for services rendered to the partnership include which of the following?

a.      Sales of partners’ assets to the partnership at guaranteed amounts regardless of market values

b.     A salary of $170,000 annually without regard to partnership income

c.      Payments of principal on secured notes honored at  maturity

d.     Net long-term capital gains earned by the  partnership

3.    Properly reported guaranteed payments have the following effect(s):

I.     The guaranteed payment increases receiving partner’s ordinary income by the entire amount paid during the tax  year

II.   The guaranteed payment decreases every partner’s tax basis in the partnership by the entire amount paid during the tax  year