Alex provides $20,000 of legal services in exchange for a 40% capital and profits interest in B partnership. What income or deductions must be picked up in Alex's and B Partnerhip's tax returns? Group of answer choices Alex recognizes $8,000 of ordinary income and B Partnership can deduct $20,000 in the current year Alex recognizes $20,000 of ordinary income and B Partnership can deduct $20,000 in the current year Alex recognizes $20,000 of ordinary income and B Partnership can deduct $8,000 in the current year Alex nor B Partnership recognize income under IRC section 721