Carmin performs services in exchange for a $25\%$ interest in Real Estate Rental Partnership. The services were worth $$25,000.$ The tax implications to Carmin are:

Multiple Choice

no taxable income and a partnership interest with a basis of $$0.$

no taxable income and a partnership interest with a basis of $$25,000.$

$$25,000$ of taxable income and a partnership interest with a basis of $$0.$

$$25,000$ of taxable income and a partnership interest with a basis of $$25,000.$