Compute the solution of the given Question
Question- Sean is admitted to the calendar year XYZ Partnership on December 1 of the current year in return for his services managing the partnership's business during he year. The partnership reports ordinary income of $100,000 for the current year without considering this transaction. Assume the non leap year.
Part 1- 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?
I want assist to calculate the tax consequences to Sean.