Marissa and Noreen Formed the MNO Partnership Four Years Ago

Marissa and Noreen formed the MNO Partnership four years ago.Because they decided the company needed some expertise in computer networking, they offered Olivia a 1/3 interest in partnership capital and profits if she would come to work for the partnership.On July 1 of the current year, the unrestricted partnership interest (fair market value of $75,000) was transferred to Olivia.How should Olivia treat the receipt of the partnership interest in the current year?

A) Nontaxable.
B) $75,000 of short-term capital gain.
C) $75,000 of long-term capital gain.
D) $75,000 of ordinary income.
E) None of the above.