$7)$ Walstein$$s$,$ an S corporation, reports the following results for the current year:

Ordinary income $$45,000$

Long$-$term capital gain $$10,000$

Municipal bond interest income $$5,000$

Walstein$$s makes a $$250,000$ cash distribution to its sole shareholder during the year. The shareholder's basis for Walstein$$s stock on January $1$ was $$110,000.$

How much of the distribution will be taxable?

$8)$ An individual owns $25\%$ of the stock of an S corporation. At the beginning of the year, the basis for that share of the stock is $$100,000.$

During the year, the corporation has ordinary income of $$150,000,$ bond income of $$30,000,$ long$-$term capital gains of $$25,000,$ and a short$-$term capital loss of $$15,000.$

The corporation$$s tax year is the same as the calendar year.

What is the individual$$s basis at the end of the year?

$9)$ An individual owns $15\%$ of the stock of an S corporation.

At the beginning of the year, the basis for that share of the stock is $$545,000.$ During the year, the corporation has ordinary income of $$975,000,$ bond income of $$75,000,$ long$-$term capital gains of $$20,000,$ but it also sells a major office building that it has held for several years at a $$450,000$ loss.

The corporation$$s tax year is the same as the calendar year.

What is the individual$$s basis at the end of the year?

$10)$ An individual receives a $25\%$ share in a partnership in exchange for contributing some property with a fair market value of $$125,000$ to the partnership. The property had a $$60,000$ basis to the partner, and the partnership also assumes the individual$$s $$25,000$ in liabilities related to the purchase of the property.

What is the individual$$s basis in the partnership if the partnership had $$100,000$ in liabilities prior to this transaction?

$11)$ Mark, a partner with $25\%$ capital and profit interest, received his Schedule K$-1$ from Buzz Lightyear Toys LP$.$ At the beginning of the year, Mark's tax basis in his partnership interest was $$140,000.$

Mark's current year's Schedule K$-1$ reported an ordinary loss of $$25,000,$ long$-$term capital gain of $$13,000,$ qualifying dividends of $$2,000,$ $$6,500$ of nondeductible expenses, a $$22,000$ cash contribution, and a reduction of $$5,000$ in his share of partnership debt.

What is Mark's adjusted basis in his partnership interest at the end of the year?

Ignore any possible effect of a qualified business income $($QBI$)$ deduction.

$12)$ An individual is liquidating a stake in a partnership. The individual$$s predistribution basis for the partnership is $$65,000,$ and the individual contributed $$97,000$ in cash when entering the partnership.

In a liquidating distribution, a partner will receive $$75,000$ in cash.

What are the tax consequences to the partner?

$13)$ Individual A joins a partnership with Partner B$,$ and Individual A contributes a piece of land with a building with a fair market value of $$400,000$ to the partnership. Individual A$$s cost basis for the land is $$250,000.$ Five years later, the land now has a fair market value of $$600,000$ and is sold to an independent third party for its fair market value. Individuals A and B are equal $(50\%)$ profit partners.

What is the tax treatment for Individual A$?$

Individual A has a precontribution gain $\_\_\_\_\_\_\_\_\_\_\_\_\_\_$ and a $\_\_\_\_\_\_\_\_\_\_\_$ postcontribution gain