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A partnership in which a parent transferred a 40% interest by gift to a child generated a profit of $160,000. Capital is a material incomeproducing
A partnership in which a parent transferred a 40% interest by gift to a child generated a profit of $160,000. Capital is a material incomeproducing factor. The parent performed services valued at $48,000. The child performed no services. How much income is allocated to the parent for services and for use of capital? Compensation for services: $ Use of capital: \$ In addition, $ of income is allocated to the child
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