Cuong was admitted to a 40% interest in Nguyen Partnership for past, present, and future services.The partnership had the following balance sheet:

Cuong was admitted to a 40% interest in Nguyen Partnership for past, present, and future services. The partnership had the following balance sheet:

         Cash, $400

        Goodwill, basis = $0, fair market value = $1,600

I am trying to figure out how this transaction is treated to Cuong and the other partners. Please include relevant code regulations to help me research them further.