C. b. 4 points 18. a. To answer this question assume a one person partnership (meaning A has a book capital account) is valid and use only outline 17. Do not apply any principles of Rev. Rul. 99-5. A has ran a single member operating business LLC for many years and owns 100%. He admits B as a new partner. Before the transaction, A's book capital account (fair market value) would be $100, his tax capital account is zero. The LLC issues a 10% interest in the LLC to B for future services. B paid nothing for the 10% interest. If the LLC was liquidated immediately after B received her 10% interest, B would receive nothing ($0) and A would receive $100. Is this a capital or a profits interest? Does this transaction trigger a mandatory revaluation of book and capital accounts? What are the income tax consequences to the partnership of the transaction? and d. What are the income tax consequences to B? option