100 North Avenue ALP is a limited partnership formed for the sole purpose of developing a small commercial building at that address. After raising $1 million in equity, the general partner approaches JP, a local contractor, with a proposal to act as the construction manager of the project in exchange for a 10% interest in the profits, if any, of the development after all expenses. This interest has no ownership of partnership capital at the time of the grant. The interest can reasonably be expected to be worth between $650,000 and $1,400,000 when the building is successfully completed and sold. JP accepts the proposal. What is the partnership's deduction for compensation to JP in the year of the grant? $0 $100,000 $650,000 $1,400,000