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Aaron, Deanne, and Keon formed the Blue Bell General Partnership at the beginning of the current year. Aaron and Deanne each contributed $110,000 and Keon

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Aaron, Deanne, and Keon formed the Blue Bell General Partnership at the beginning of the current year. Aaron and Deanne each contributed $110,000 and Keon transferred an acre of undeveloped land to the partnership. The land had a tax basis of $70,000 and was appraised at $180,000. The land was also encumbered with a $70,000 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 $7,000 principal payment on the mortgage. For the first year of operations, the partnership records disclosed the following information: Sales revenue Cost of goods Bold Operating expenses Long-term capital gains $1231 gains Charitable contributions Municipal bond interest Salary paid a guaranteed payment to Deanne (not included in expenses) $ 470,000 $ 410,000 $ 70,000 $ 2.400 900 300 300 3,000 ences a. Compute the adjusted basis of each partner's interest in the partnership immediately after the formation of the partnership b. 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 bases in their partnership interests at the end of the first year of operations? Reg A ReqB RegD Compute the adjusted basis of each partner's interest in the partnership immediately after the formation of the partnership. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) Adjusted basis Keon 5 23,333 Aaron 133,333 Deanne 5 133,333 ReqB > Complete this question by entering your answers in the tabs below. Reg A ReqB ReqD 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. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Negative amounts should be entered with a minus sign. Leave no answer blank. Enter zero if applicable.) Show less Total Keon Aaron Description Ordinary business income (loss) Separately stated items on Schedule K-1 Deanne Rega ReqD > Reg A ReqB ReqD What are the partners' adjusted bases in their partnership interests at the end of the first year of operations? (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) Keon Aaron Deanne Adjusted basis

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