At the end of the current year, Kari will receive a one-third capital interest only in exchange for services rendered. Kari's interest will not be subject to a substantial risk of forfeiture and the costs for the type of services she provided are typically not capitalized by the partnership. For the current year the income and expenses from operations are equal. Consequently, the only tax consequences for the year are those relating to the admission of Kari to the partnership. (Leave no answer blank. Enter a. Compute and characterize any gain or loss Kari may have to recognize as a result of her admission to the partnership Gain or loss recognized b. Compute Kanis basis in her partnership interest. Basis c. Prepare a balance sheet of the partnership immediately after Karis admission showing the partners' tax capital accounts and capital accounts stated at fair market value. MS Partnership Balance Sheet Tax Basis 704(byFMV Assets: Cash Land Inventory Totals Capital: Capital-Mary Capital-Scott Capital-Kari Totals 174 $ 234 174 234 d. Calculate how much gain or loss Kari would have to recognize if, instead of a capital interest, she received a profits interest. Gain or loss recognized At the end of the current year, Kari will receive a one-third capital interest only in exchange for services rendered. Kari's interest will not be subject to a substantial risk of forfeiture and the costs for the type of services she provided are typically not capitalized by the partnership. For the current year the income and expenses from operations are equal. Consequently, the only tax consequences for the year are those relating to the admission of Kari to the partnership. (Leave no answer blank. Enter a. Compute and characterize any gain or loss Kari may have to recognize as a result of her admission to the partnership Gain or loss recognized b. Compute Kanis basis in her partnership interest. Basis c. Prepare a balance sheet of the partnership immediately after Karis admission showing the partners' tax capital accounts and capital accounts stated at fair market value. MS Partnership Balance Sheet Tax Basis 704(byFMV Assets: Cash Land Inventory Totals Capital: Capital-Mary Capital-Scott Capital-Kari Totals 174 $ 234 174 234 d. Calculate how much gain or loss Kari would have to recognize if, instead of a capital interest, she received a profits interest. Gain or loss recognized