Nicholas,a 40% Partner in Nedeau Partnership,gives One-Half of His Interest $$\begin{array} {| l | l | } \hline \text { Nicholas } & \text { Michelle } \\\hline \$ 100,000 & \$ 100,000 \\\hline\end{array}$$

Nicholas,a 40% partner in Nedeau Partnership,gives one-half of his interest to his sister,Michelle.During the current year,Nicholas performs services for the partnership for which reasonable compensation is $80,000,but for which he accepts no pay.Nicholas and Michelle are each credited with a $100,000 distributive share,all of which is ordinary income.What are Nicholas' and Michelle's distributive share?

A) $$\begin{array} {| l | l | } \hline \text { Nicholas } & \text { Michelle } \\\hline \$ 100,000 & \$ 100,000 \\\hline\end{array}$$
B) $$\begin{array} {| l | l | } \hline \text { Nicholas } & \text { Michelle } \\\hline \$ 60,000 & \$ 60,000 \\\hline\end{array}$$
C) $$\begin{array} {| l | l | } \hline \text { Nicholas } & \text { Michelle } \\\hline \$ 180,000 & \$ 100,000 \\\hline\end{array}$$
D) $$\begin{array} {| l | l | } \hline \text { Nicholas } & \text { Michelle } \\\hline \$ 140,000 & \$ 60,000 \\\hline\end{array}$$