For tax purposes, a retiring partner who receives retirement
payments ceases to be regarded as a partner
a. On the last day of the taxable year in which the partner
b. On the last day of the particular month in which the
c. The day on which the partner retires.
d. Only after the partner’s entire interest in the partnership
69. John Albin is a retired partner of Brill & Crum, a personal
service partnership. Albin has not rendered any services to Brill
& Crum since his retirement in 2010. Under the provisions of
Albin’s retirement agreement, Brill & Crum is obligated to pay
Albin 10% of the partnership’s net income each year. In compliance
with this agreement, Brill & Crum paid Albin $25,000 in
2012. How should Albin treat this $25,000?