Determine the amount of income that the partner should report as income on partnership or the amount of capital gain or loss the partner should recognize:

1) Andrew has 25%% interest in the profit losses of Power Partnershship. Power's ordinary income is $120,000 after a $15,000 deduction for guaranteed payment made to Andrew for services rendered. None of the $120,000 ordinary income was distributed to the partners.

2) Alfred sold 40% of his business to his daughter, Clara. The resulting partnership had an operating income of $90,000. Capital is a material income-producing factor. Alfred performed services worth $54,000, which is reasonable compensation, and Clara performed no servies. Determine the income that Clara should report.