Tina and Randy Formed the TR Partnership Four Years Ago

Tina and Randy formed the TR Partnership four years ago.Because they decided the company needed some expertise in multimedia presentations,they offered Susan 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 $25,000) was transferred to Susan.How should Susan treat the receipt of the partnership interest in the current year?

A) Nontaxable.
B) $25,000 short-term capital gain.
C) $25,000 long-term capital gain.
D) $25,000 ordinary income.
E) None of the above.