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Sean is admitted to the calendar year XYZ Partnership on December 1 of the current year in return for his services managing the partnershipAc€?cs business during he year. The partnership reports ordinary income of $100,000 for the current year without considering this transaction. Assume the nonleap year.
What are the tax consequences to Sean and the calendar year XYZ Partnership if Sean receives 20% capital and profits interest in the partnership with a $75,000FMV?
What are the tax consequences to Sean and the XYZ Partnership if Sean receives only a 20% profits interest with no determinable FMV?
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