George Received a Fully Vested 10% Interest in Partnership Capital

question 60

True/False

George received a fully vested 10% interest in partnership capital and a 20% interest in future partnership profits in exchange for services rendered to the GHP, LLC (not a publicly traded partnership interest). The future profits of the partnership are subject to normal operating risks. George will report ordinary income equal to the fair market value of the profits interest, but the capital interest will not be currently taxed to him.

---

Definitions:

At-risk Patient

An individual who is considered to have a higher than average risk of developing a particular disease or condition.

Goal Achievement

The successful accomplishment of desired outcomes or objectives.

Psychosocial Aspect

Refers to the interrelation of social factors and individual thought and behavior.

Immobile Patient

A patient who is unable to move independently, requiring assistance for mobility and prevention of complications associated with prolonged immobility.