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 $29,250. During January and February, the partnership generates $32,970 of ordinary income and $5,202 of tax-exempt income. On March 1, Steven sells his partnership interest to Juan for a cash payment of $49,950. The partnership has the following assets and no liabilities at the sale date:

	Tax Basis	FMV
Cash	$ 34,500	$ 34,500
Land held for investment	34,500	69,000
Totals	$ 69,000	$ 103,500

b. What are the amount and character of Steven's recognized gain or loss on the sale?

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

d. What is the partnership's basis in the assets following the sale?