Karl arranges financing for a limited partnership to purchase real estate in exchange for a 50% interest in partnership profits. two weeks later, karl sells the profits interest for $30,000. in this tax year, karl must recognizea) no gain or loss. b) a $30,000 short-term capital gain. c) a $30,000 ordinary income. d) a $30,000 sec. 1231 gain.

Telecom co. enters into a two-year contract with a customer to provide wireless service (voice and data) for $40 per month. to induce customers, telecom co. provides a free phone. telecom co. normally sells the phone on a stand-alone basis for $200. telecom co. also charges the customer a one-time activation fee of $35.which of the following is true? a) there are two distinct performance obligations: the voice service and the data service b) the free phone constitutes as a marketing expense c) the activation fee is a separate performance obligationd) there are two distinct performance obligations: the wireless services and the phone