Exercise 10-17 (Algorithmic) (LO. 3) Woznlackl and others form Jewel LLC, with each receiving a one-fifth interest in the capital and profits of the LLC. Woznlackl receives. the one-fitth interest as compensation for tax planning services rendered prior to the formation of the LLC. The other partners each contribute $97,800 cash. The value of a one-fifth capital interest in the LLC (for each of the parties) is $97,800. a. How much income does Wozniacki recognize as a result of this transaction, and what is its character? Woznlacki recognizes 1 as b. How much is Woznlacki's basis in the LLC interest? How will Jewel LLC treat this amount? His basis is : and the partnershlp