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Timmy puts in cash of $15,000 for a 33% interest in Lassie Enterprises, a partnership....

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Accounting

Timmy puts in cash of $15,000 for a 33% interest in Lassie Enterprises, a partnership. The other two partners put in $50,000 apiece for two equal interests. As part of the partnership agreement, Timmy also agrees to perform initial accounting services for the partnership, free of charge, for the first six months. How much income must Timmy recognize, if any, from this transaction, and what is his basis in the partnership interest?

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