Exercise 10-25 (Algorithmic) (LO. 10) On June 1 of the current tax year, Elisha and Ezra (who are equal partners) contribute property to form the Double E Partnership. Elisha contributes cash of $214,560. Ezra contributes a building and land with an adjusted basis and fair market value of $357,600, subject to a liability of $143,040. The partnership borrows $22,350 to finance construction of a parking lot in front of the building. At the end of the first year (December 31), the accrual basis partnership owes $8,940 in trade accounts payable to various creditors. The partnership reported net income of $33,525 for the year that they share equally. Assume that Elisha and Ezra share equally in partnership liabilities. How much is Elisha's basis in the partnership interest on December 317 Erra's? Round interim and final answers to whole dollars. Elisha's basis: $ 299,100 X Ezra's basis: $ Check My Work A partner's adjusted basis in a newly formed partnership usually equals (1) the adjusted basis in any property contributed to the partnership plus (2) the fair market value of any services the partner performed for the partnership (.e, the amount of ordinary income reported by the partner for services rendered to the partnership). After the partner is admitted to the partnership, the partner's basis is adjusted for numerous items. Partnership debt includes any partnership obligation that creates an asset; results in an expense to the partnership, or results in a nondeductible, noncapitalizable item at the partnership level. This definition indudes certain contingent liabilities