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On June 1 of the current year, Kelly received a 10% interest in Rock Co., a partnership, for services contributed to the partnership. Rocks net
On June 1 of the current year, Kelly received a 10% interest in Rock Co., a partnership, for services contributed to the partnership. Rocks net assets at that date had a basis of $70,000 and a fair market value of $100,000. In Kellys current-year income tax return, what amount must Kelly include as income from the transfer of the partnership interest? Explain answer with code section.
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