Tara and Robert formed the TR Partnership four years ago. Robert has expertise in multimedia presentations and received his partnership interest as compensation for services he provided to the partnership. The value of his services is $25,000. How should Robert treat the receipt of the partnership interest in the current year?

1. Nontaxable.
2. $25,000 ordinary income.
3. $25,000 short-term capital gain.
4. $25,000 long-term capital gain.