Allison, Keesha, and Steven each owns an equal interest in KAS Partnership, a calendar-year-end, cash-method entity. On January 1 of the current year, Steven's basis in his partnership interest is $30,750. During January and February, the partnership generates $34,950 of ordinary income and $5,670 of tax-exempt income. On March 1, Steven sells his partnership interest to Juan for a cash payment of $53,250. The partnership has the following assets and no liabilities at the sale date:

	Tax Basis	FMV
Cash	$ 37,500	$ 37,500
Land held for investment	37,500	75,000
Totals	$ 75,000	$ 112,500

c. What is Juan's initial basis in the partnership interest?