In 2016, Phil and Greg formed ABC, LLC, a car dealership in Kansas City. In 2017, Phil and Greg realized they needed an advertising expert to assist in their business. Thus, the two members offered Grant, a marketing expert, a 1/3 capital interest in their partnership for contributing his expert services. Grant agreed to this arrangement and received his capital interest in 2017. If the value of the LLC's capital equals $180,000 when Grant receives his 1/3 capital interest, which of the following tax consequences does not occur in 2017?

		Phil, Greg and Grant receive an ordinary deduction of $20,000 in 2017.
		Grant reports $60,000 of ordinary income in 2017.
		Phil and Greg receive an ordinary deduction of $30,000 in 2017.
		Grant reports $60,000 of ordinary income in 2017, and Phil and Greg receive an ordinary deduction of $30,000 in 2017.