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Reporting the Income of the PartnershipElder Attorney had practiced law for several years and had
accumulated $50,000 in accounts receivable. He reported his income for tax
purposes under the cash receipts and disbursements method. Elder formed an
equal partnership with Senior Counsel, Lawyers Unlimited, a cash-basis law
partnership, and transferred his $50,000 accounts receivable to the partnership
for their admitted FMV of $50,000. In the first year of the partnership, its
cash-basis income was $100,000, $50,000 of which was the collection of the
transferred receivables. When is the income of the partnership reported and by
whom?