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On July 1, 2008, Linda Anderson received a 10% interest in the capital of Doty Associates, a partnership, for services rendered. Doty's net assets at July 1 had a basis of $70,000 and a fair market value of $100,000. What income must Anderson include in her 2008 tax return for the partnership interest transferred to her by the other partners?
Answer- $0, $7,000 ordinary Income, $10,000 ordinary income, $10,000 long term capital gain
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