On december 31 of last year harvey gave his son jeffrey a


On December 31 of last year, Harvey gave his son, Jeffrey, a gift of a 30% interest in a partnership in which capital is a material income-producing factor.  For the current calendar year, the partnership's ordinary income was $150,000.  Harvey and Jeffrey were the only partners in the current year. There were no guaranteed payments to partners.  Harvey's services performed for the partnership were worth a reasonable compensation of $50,000 for the current year.  Jeffrey has never performed any services for the partnership.  What is Harvey's distributive share of partnership income for the current year?

a.       $150,000.

b.       $120,000.

c.       $75,000.

d.      $30,000.

e.       None of the above.

Request for Solution File

Ask an Expert for Answer!!
Taxation: On december 31 of last year harvey gave his son jeffrey a
Reference No:- TGS01299437

Expected delivery within 24 Hours