Question: A partnership in which a parent transferred a 4 0 % interest by gift to a child generated a profit of $ 1 5 2

A partnership in which a parent transferred a 40% interest by

A partnership in which a parent transferred a 40% interest by gift to a child generated a profit of $152,500. Capital is a material incomeproducing factor. The parent performed services
valued.at $45,750. The child performed no services.
How much income is allocated to the parent for services and for use of capital?
Compensation for services:
Use of capital:
In addition, $ of income is allocated to the child.
gift to a child generated a profit of $152,500. Capital is a

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