Dad gives Son a 20% capital and profits interest in the Family Partnership. Dad holds a 70%

Question:

Dad gives Son a 20% capital and profits interest in the Family Dad holds a 70% interest, and Fred, an unrelated individual, holds a 10% interest. Dad and Fred work in the but Son does not. Dad and Fred receive reasonable compensation for their work. The earns $100,000 ordinary income, and the partners agree to divide this amount based on their relative ownership interests. What income must Father, Son, and Fred report if Family is a manufacturing firm with substantial inventories?
Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...