Equal members John and Daniel form Blue, LLC, a medical practice. John contributes assets (Equipment #1) from his existing practice of $15,000 cash basis accounts receivable (since cash basis there is a $0tax basis for the receivables) and depreciated equipment with a fair market value of $21,000 and adjusted basis of $3,000. The equipment has a three year remaining recovery period.

Daniel is new to the profession and contributes equipment (Equipment #2) he purchased for $36,000 from a retiring practitioner.

Compute the members' Tax and "Book" basis in the LLC in their Capital Accounts and specific asset accounts after initial contribution of property to Blue,LLC.