Carina DPond, Lester Forest, and Daniel Mulligan share a passion for golf and decide to go into the golf club manufacturing business together. On January 2, 2021, DPond, Forest, and Mulligan form the Par Partnership, a general partnership. Pars main product will be a perimeter-weighted titanium driver with a patented graphite shaft. All three partners plan to actively participate in the business. The partners contribute the following property to form Par:

Partner Contribution Carina DPond Land, FMV $460,000

Basis $460,000, Mortgage $60,000 Lester Forest $400,000 Daniel Mulligan $400,000

Carina had recently acquired the land with the idea that she would contribute it to the newly formed partnership. The partners agree to share in profits and losses equally. Par elects a calendar year-end and the accrual method of accounting.

In addition, Par received a $1,500,000 recourse loan from Huge Bank at the time the contributions were made. Par uses the proceeds from the loan and the cash contributions to build a state-of-the-art manufacturing facility ($1,200,000), purchase equipment ($600,000), and produce inventory ($400,000). With the remaining cash, Par invests $45,000 in the stock of a privately owned graphite research company and retains $55,000 as working cash. Par operates on a just-in-time inventory system so it sells all inventory and collects all sales immediately. That means that at the end of the year, Par does not carry any inventory or accounts receivable balances. During 2021, Par has the following operating results:

Sales $ 1,126,000 Cost of goods sold 400,000 Interest income from tax-exempt bonds 900 Qualified dividend income from stock 1,500 Operating expenses 126,000 Depreciation (tax) 179 on equipment $39,000 Equipment 81,000 Building 24,000 144,000 Interest expense on debt 120,000

The partnership is very successful in its first year. The success allows Par to use excess cash from operations to purchase $15,000 of tax-exempt bonds (you can see the interest income already reflected in the operating results). The partnership also makes a principal payment on its loan from Huge Bank in the amount of $300,000 and a distribution of $100,000 to each of the partners on December 31, 2021.

The partnership continues its success in 2022 with the following operating results: Sales $ 1,200,000 Cost of goods sold 420,000 Interest income from tax-exempt bonds 900 Qualified dividend income from stock 1,500 Operating expenses 132,000 Depreciation (tax) Equipment $147,000 Building 30,000 177,000 Interest expense on debt 96,000

The operating expenses include a $1,800 trucking fine that one of their drivers incurred for reckless driving and speeding and meals expense of $6,000 (the meals were not provided by a restaurant).

Par has not purchased or sold any equipment since its original purchase just after formation.

a. Determine each partners recognized gain or loss upon formation of Par. b. What is each partners initial tax basis in Par on January 2, 2021? c. Prepare Pars opening tax basis balance sheet as of January 2, 2021. d. Using the operating results, what are Pars ordinary income and separately stated items for 2021 and 2022? What amount of Pars income for each period would each of the partners receive? e. Using the information provided, prepare Pars page 1 and Schedule K to be included with its Form 1065 for 2021. Also, prepare a Schedule K-1 for Carina. f. What is Carinas, Lesters, and Daniels bases in their partnership interest at the end of 2021 and 2022?

This is all I have on the assignment. I am not sure what additional information is needed. Please help me at your earliest.