Carson, Shelby, and Wyatt formed the Cedar Lake General Partnership on January $1,2022.$

Carson and Shelby each contributed $$110,000$ and Wyatt transferred an acre of undeveloped land

to the partnership. The land had a tax basis of $$60,000$ and was appraised at $$180,000.$ The land

was also encumbered with a $$72,000$ nonrecourse mortgage for which no one was personally

liable. All three partners agreed to split profits and losses equally.

At the end of $2022,$ Cedar Lake makes the following distributions:

For the first year of operations, the partnership records disclosed the following information:

The Requirements

a$.$ Compute the partners' initial tax bases in the partnership immediately after the formation of

the partnership $($Show your work!$).$

b$.$ List the separate items of partnership income, gains, losses, and deductions that the partners

must show on their individual income tax returns that include the results of the partnership's first

year of operations and separately stated items. $($Show your work!$).$

c$.$ Compute the partners' adjusted tax bases in their partnership interests at the end of the first

year of operations. $($Remember$,$ not all separately stated items are included in the calculation of

ending tax basis$).$

d$.$ Prepare Cedar Lake's $2022$ Form $1065$ page $1$ and page $4($Schedule K$)$ for its first year of

operations along with Schedule K$-1$ for Shelb