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Barry received a 10% capital interest in ABC partnership as a gift from his grandfather, Bob. He will be entitled to a 10% share of
Barry received a 10% capital interest in ABC partnership as a gift from his grandfather, Bob. He will be entitled to a 10% share of partnership income. Barry's gift was effective on the first day of the partnership year. Prior to the gift to Barry, Bob owned a capital interest of 35% of the partnership, and Bob's share of partnership income was 35%. Bob's compensation for services to the partnership this year is $35,000. The total partnership distributable income at year-end is $100,000. What is Barry's distributive share of the partnership income? Question 13Select one: a. $ 6,500 b. $10,000 c. $25,000 d. $35,000
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