Adam and Jason

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In X1, Adam and Jason formed ABC, LLC, a car dealership. IN X2, Adam and Jason realized they needed an advertising expert to assist in the business. Adam and Jason offered Cory, a marketing expert, a 1/3 capital interest in their partnership for contributing his services. Cory agreed to this arrangement and received hsi capital interest in X2. If the value of teh LLC’s capital equals $180,000 when Cory receives his 1/3 capital interest, which of the following tax consequences does NOT occur in X2?-Cory reports $60,000 of ordinary income-Adam, Jason and Cory receive an ordinary deduction of $20,000 in X2-Adam and Jason receive an ordinary deduction of $30,000 in X2-Cory reports $60,000 of ordinary income in X2, and Adam and Jason receive an ordinary deduction of $30,000 in X2.

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