Austin, LLC has properly elected to be taxed as a partnership for Federal Income Tax purposes. Benjamin owns a 20% interest in Austin, LLC, with a basis on January 1, 2020 of $8,000. During the calendar year 2020, Austin, LLC experienced the following income and expenses:

income
From Operations	1,000,000
captial gain on sale of excess land not need by business	20,000

Expenses:
Charitable contribution	-5,000
salaries	-600,000
utilities	-50,000
MACRS Depreciation	-90,000
179 immediate write off from purchase of new delivery van	-60,000
net income	275,000

n addition, total distributions of $100,000 were paid to the partners during the year.

The bookkeeper for Austin, LLC is in the process of preparing the federal tax return for the company for the calendar year 2020 (Form 1065), and consults with you for answers to the following questions.

a) Which items, if any, should be reported as separately stated items on the Form K-1 that will be sent to each partner?

b) Please provide a detailed calculation of Benjamins year end basis in his partnership interest?