Jim Smith, a client of yours, has asked you to prepare the tax return for the current year for BJS, LLC, of which he is a member. This is the first year of operations for BJS, LLC. Jim has contributed cash in the amount of $1,500,000. In addition, Betsy Smith, Jim's daughter, has contributed cash in the amount of $1,200,000. Sandco Industries, Inc., a C-corporation, decided to become a member of BJS, LLC by contributing its land in Texas, which has a basis of $1,250,000 and a fair-market value of $1,300,000. The Johnson Neuman Trust contributed cash to BJS, LLC in the amount of $700,000. A C-Corporation named Tiger, Inc. contributed $500,000 cash