a. Compute the adjusted basis of each partners interest in the partnership immediately after the formation of the partnership.

! Required information (The following information applies to the questions displayed below.] Aaron, Deanne, and Keon formed the Blue Bell General Partnership at the beginning of the current year. Aaron and Deanne each contributed $101,000 and Keon transferred an acre of undeveloped land to the partnership. The land had a tax basis of $79,000 and was appraised at $180,000. The land was also encumbered with a $79,000 nonrecourse mortgage for which no one was personally liable. All three partners agreed to split profits and losses equally. At the end of the first year, Blue Bell made a $6,000 principal payment on the mortgage. For the first year of operations, the partnership records disclosed the following information: Sales revenue Cost of goods sold Operating expenses Long-term capital gains $1231 gains Charitable contributions Municipal bond interest Salary paid as a guaranteed payment to Deanne (not included in expenses) $ 460,000 410,000 61,000 1,800 900 300 300 3,000