On june 1, year 2, stephen farr received a 10% interest in the capital of rev company, a partnership, for services rendered. rev's net assets at june 1 had a basis of $35,000 and a fair market value of $50,000. what income must farr include in his year 2 tax return for the partnership interest transferred to him by the other partners? a) $5,000 capital gain b) $5,000 ordinary income c) $3,500 capital gain d) $3,500 ordinary income