John Smith has joined Partnership XYZ by purchasing 65% of the partnership. Mr. Smith's contribution is $10,000 of cash, Property with a basis of $20,000 and a FMV of $120,000, Accounts Receivables with a $10 000 basis and FMV of $20,000. Mr. Smith wants you to advise him on his tax consequences for the partnership plus advise him on what his basis is in the partnership. In your research work papers show a table to show Mr. Smith his basis, both inside and outside basis as well as pulling together your research Into this question.