On December 31 of Last Year, Donnie Gave His Son

Multiple Choice

On December 31 of last year, Donnie gave his son, Jimmy, a gift of a 30% interest in a partnership in which capital is a material income-producing factor.For the current calendar year, the partnership's ordinary income was $150,000.Donnie and Jimmy were the only partners in the current year.There were no guaranteed payments to partners.Donnie's services performed for the partnership were worth a reasonable compensation of $50,000 for the current year.Jimmy has never performed any services for the partnership.What is Jimmy's distributive share of partnership income for the current year?

A) $120,000.
B) $105,000.
C) $45,000.
D) $30,000.
E) None of the above.