della retires from the bcd general partnership/

Della will receive payments of $20,000 cash plus 5% of partnership ordinary income for each of the next five years. The partnership agreement specifies that goodwill will be paid for when a partner retires. Bruce, Celia, and Della agree that the partnership has $21,000 in goodwill when Della retires and that she will be paid for her one-third share.
Required:Â
A tax manager in your firm has asked you to determine the amount and character of the income Della must report for each of the next five years. In addition, he wants you to research the tax consequences of the retirement on the partnership for the next five years. (Assume the partnership earns $100,000 of ordinary income each year for the next five years.) Prepare an oral presentation to be made to Della explaining the tax consequences of the payments she will receive.