William, a CPA, Owns a 75% Interest in Burglar Concrete

Multiple Choice

William, a CPA, owns a 75% interest in Burglar Concrete Company (BCC) . BCC is organized as a partnership. During the current year, William prepares BCC's tax return and receives his normal $300 fee for the preparation of the return.
I.BCC cannot deduct the $300 fee because of the related party rules.
II.William must recognize the $300 fee as income.
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A) Only statement I is correct.
B) Only statement II is correct.
C) Both statements are correct.
D) Neither statement is correct.