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QUESTION
A partnership in which a parent transferred a 40% interest by gift to a child generated a profit of $130,000. Capital is a material income-producing...
A partnership in which a parent transferred a 40% interest by gift to a child generated a profit of $130,000. Capital is a material income-producing factor. The parent performed services valued at $44,000. The child performed no services.
Under these circumstances, $_________ is allocated to the parent as compensation for services and $_________ for capital. The remaining $_______ of income allocated to the child.
