Aaron, Deanne, and Keon formed the Blue Bell General Partnership at the beginning of the current year. Aaron and Deanne each contributed $134,000, and Keon transferred an acre of undeveloped land to the partnership. The land had a tax basis of $73,600 and was appraised at $204,000. The land was also encumbered with a $73,600 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 $9,400 principal payment on the mortgage. For the first year of operations, the partnership records disclosed the following information:

Sales revenue	$ 506,000
Cost of goods sold	429,200
Operating expenses	89,200
Long-term capital gains	2,760
1231 gains	600
Charitable contributions	300
Municipal bond interest	300
Salary paid as a guaranteed payment to Deanne (not included in expenses)	3,000

Required:

1. Compute the adjusted basis of each partner's interest in the partnership immediately after the formation of the partnership.
2. List the separate items of partnership income, gains, losses, and deductions that the partners must show on their individual income tax returns that include the results of the partnership's first year of operations.

d.What are the partners' adjusted basis in their partnership interests at the end of the first year of operations?