On June 1 of the current year, Kelly received a 10% interest in Rock Co., a partnership, for services contributed to the partnership. Rock’s net assets at that date had a basis of $70,000 and a fair market value of $100,000. 

In Kelly’s current-year income tax return, what amount must Kelly include as income from the transfer of the partnership interest? Explain the answer with the code section.

Answer rating: 100% (QA)

income from the transfer of the partnership interest10000010 10000 The issue of value is always impo... View the full answer