Allison, Keesha, and Steven each own equal interests in KAS Partnership, a calendar-year-end, cash-method entity. On January 1 of the current year, Stevens basis in his partnership interest is $31,500. During January and February, the partnership generates $35,940 of ordinary income and $5,904 of tax-exempt income. On March 1, Steven sells his partnership interest to Juan for a cash payment of $54,900. The partnership has the following assets and no liabilities at the sale date:

		Tax Basis		FMV
Cash	$	39,000		$	39,000
Land held for investment		39,000			78,000
Totals	$	78,000		$	117,000