Alan and John form ABC, LLC, an electronic goods supplier and distributor. After several years in business Alan and John realize they need an expert in marketing to assist them in their business. As such, ABC, LLC offers Charlie, a marketing expert, a 1/3 capital interest in their partnership for contributing his expert services. Charlie agrees and receives the partnership interest which is worth $180,000. Which of the following tax consequences occurs upon the transfer of the interest to Charlie.

a. Charlie reports $180,000 of ordinary income

b. Alan, John and Charlie receive an ordinary deduction for the marketing services rendered.

c. Alan receives an ordinary deduction for the marketing services rendered.

d. Charlie reports $180,000 of ordinary income and Alan and John receive an ordinary deduction for the marketing services rendered.