Question $10(2$ points$)$

In X$1,$ Adam and Jason formed ABC, LIC, a car dealership in Kansas City. In X$2,$ Adam and

Jason realized they needed an advertising expert to assist in their business. Thus, the

two members offered Cory, a marketing expert, a $\frac{1}{3}$ capital interest in their

partnership for contributing his expert services. Cory agreed to this arrangement and

received his capital interest in X $2.$ If the value of the LLC$\text{'}$s capital equals $$180,000$

when Cory receives his $\frac{1}{3}$ capital interest, which of the following tax consequences

does not occur in x $2?$

Cory reports $$60,000$ of ordinary income in

Adam, Jason and Cory receive an ordinary deduction of $$20,000$ in x $2$

Adam and Jason receive an ordinary deduction of $$30,000$ in X $2$

Cory reports $$60,000$ of ordinary income in X$2,$ and Adam and Jason receive an

ordinary deduction of $$30,000$ in $x2$