Group 2 Problems 4, 5, 11, 14, 16, 20, 23 - these can be calculated without completing forms4. Nan contributes property with an adjusted basis of $50,000 to a partnership. The property has a fair market value of $60,000 on the date of the contribution. What is the partnership's basis in the property contributed by Nan?5. Elaine's original basis in the Hornbeam Partnership was $40,000. Her share of the taxable income from the partnership since she purchased the interest has been $70,000, and Elaine has received $80,000 in cash distributions from the partnership. Elaine did not recognize any gains as a result of the distributions. In the current year, Hornbeam also allocated $1,000 of tax-exempt interest to Elaine. Calculate Elaine's current basis in her partnership interest.11. K&T Company is a partnership with two equal partners, Kai and Taonga. The partnership has income of $60,000 for the year before guaranteed payments. Guaranteed payments of $25,000 are paid to Kai during the year. Calculate the amount of income that should be reported by Kai and Taonga from the partnership for the year.14. Walter receives cash of $18,000 and land with a fair market value of $75,000 (adjusted basis of $50,000) in a current distribution. His basis in his partnership interest is $16,000 before the distribution. a. What amount of gain must Walter recognize as a result of the current distribution? b. What amount of gain must the partnership recognize as a result of the distribution?c. What is Walter's basis in his partnership interest immediately after the distribution?16. Kiwi Interests is a partnership with a tax year that ends on September 30, 2022. During that year, Kereru, a partner, received $2,000 per month as a guaranteed pay-ment, and his share of partnership income after guaranteed payments was $14,000. For October through December of 2022, Kereru received guaranteed payments of $3,000 per month. Calculate the amount of income from the partnership that Kereru should report for the tax year ending December 31, 2022.20. Janie owns a 30-percent interest in Chang Partnership. Chang has W-2 wages of $20,000 and qualified property of $900,000 in 2022. a. When computing the W-2 wages limitation, what is the amount of wages that will be allocated to Janie?b. What is the amount of qualified property that will be allocated to Janie?23. Van makes an investment in an LLC in the current year. Van's capital contributions to the LLC consist of $30,000 cash and a building with an adjusted basis of $70,000, subject to a nonrecourse liability (seller financing) of $20,000. Calculate the amount that Van has at risk in the LLC immediately after making the capital contributions.Group 3 Problem 1 - please use tax forms that are located in the Files folder under IRS Tax Forms

GROUP 3: COMPREHENSIVE PROBLEM Emily Jackson (Social Security number 765-12-4326) and James Stewart (Social Security number 466-74-9932) are partners in a partnership that owns and operates a barber shop. The partnership's first year of operation is 2022. Emily and James divide income and expenses equally. The partnership name is J&S Barbers, it is located at 1023 Lexington Avenue, New York, NY 10128, and its Federal ID number is 95-6767676. The 2022 financial statements for the partnership are presented below. J&S Barbers Income Statement for the Year Ending December 31, 2022 Gross income from operations $349,000 Interest income 1,000 Deductions: Salaries to employees (includes guaranteed payments 100,000 of $10,000 to Emily) Payroll taxes 11,000 Supplies 7,900 Rent 90,000 Depreciation 32,100 Short-term capital loss 2,000 Non-deductible entertainment 3,000 Charitable contributions 1,000 Net income $103,000 Partners' withdrawals (each partner) $ 50,000 J&S Barbers Balance Sheet as of December 31, 2022 Assets: Cash $92,000 Leasehold improvements $ 3,100 Equipment 32,000 Accumulated depreciation (32,100) 3,000 $95,000 Liabilities and Capital: Recourse long-term debt $52,000 Partners' capital ($20,000 contributed by each partner) 43,000 $95,000 Emily lives at 456 E. 70th Street, New York, NY 10006, and James lives at 436 E. 63rd Street, New York, NY 10012. Required: Complete J&S Barbers' Form 1065 and Emily and James' Schedules K-1. Do not fill in Schedule D for the capital loss, Form 4562 for depreciation, or Schedule B-1 related to ownership of the partnership. Make realistic assumptions about any missing data