Kelsey and Ryan have formed a partnership to operate a restaurant. Kelsey contributes real estate appropriate for a restaurant. Although it is currently valued at $100,000, she paid $80,000 for the property several years ago. Ryan contributes cash of $100,000. The partnership agreement states that Kelsey will receive 75% of the profits and losses, based on her vast experience in the industry, with Ryan receiving a 25% share. In the business first year of operation, it has profits of $600,000. The partnership files a 1065 return. How much income should Kelsey report on her tax return from the partnership?

a. 600,000

b. 0

c. 450,000

d. 300,000