1.) Jami and Casey formed an equal partnership on February 1 of the current year. Jami contributed $60,000 in cash and land with a basis of $18,000 and fair market value of $40,000. Casey contributed equipment with a basis of $42,000 and a fair market value of $100,000.

a.) What is Jamis basis in her partnership interest?

b.) What is Caseys basis in her partnership interest?

2.) JAC Partnership reported gross income from Operations of $60,000, operating expenses of $20,000, interest income of $3,000 and charitable contributions of $6,000. On the Partnership 1065 tax return how much would be shown on page 1 and what amounts would be shown on the Schedule K-1 as separately stated items?

3.) Jacks basis in JTD Partnership interest is $200,000 at the beginning of the tax year. His share of partnership items is as follows: ($120,000) ordinary loss, $6,000 tax-exempt interest and a $14,000 long-term capital gain. In addition, he received a $20,000 cash distribution during the year; and, his share of partnership debt increased by $10,000. What is Jacks ending basis in his partnership interest?

4.) Josh and Tyler formed JT LLC. Josh contributed cash at $20,000, land with a basis of $40,000 and fair market value of $25,000, equipment with a basis of $0 and fair market value of $35,000 and inventory with a basis of $30,000 and fair market value of $40,000. Tyler contributed $120,000 in cash.

a.) How much is Joshs basis in his LLC interest?

b.) What is the LLCs basis in the assets it received (land, equipment and inventory)?

5.) Squirrel contributed property valued at $120,000, with a basis of $30,000 in exchange for a 40% interest in Acorn Partnership. If Acorn sells the property that same year to an outside party for $150,000, how much gain will be allocated to Squirrel?

6.) In a proportionate liquidating distribution in which the Partnership is also liquidated, Jan receives $8,000 cash and inventory with a basis to the Partnership of $5,000 and a fair market value of $20,000. Immediately before the distribution, Jans basis in her Partnership interest was $15,000.

a.) What basis does Jan take in the inventory she received?

b.) What amount, if any, does Jan recognize as gain or loss in the distribution?

7.) Dillons basis in his LLC interest is $10,000. In a current non-liquidating distribution he receives land with a basis of $10,000 and fair market value of $12,000 and inventory with a basis of $6,000 and fair market value of $8,000. After the proportionate non-liquidating distribution what is:

a.) Dillons basis in his LLC interest?

b.) His basis in the inventory?

c.) His basis in the land?

8.) Andrew is a 1/3 partner in AJ&J Partnership. He received a guaranteed payment in the current year of $50,000. Partnership income before considering the guaranteed payment was $20,000.

a.) What is Andrews share of the Partnerships ordinary income or loss?

b.) How is the $50,000 guaranteed payment Andrew received taxed to him?