Kyle and James are equal partners in the KJ Partnership. On June 30, 2019, Kyle and James combined partnership capitalaccount balance is $360,000 total. One-halg amount is also equal to the adjusted cost base of each of their partnershipinterests. Mike is admitted as an equal partner on June 30, 2019, and pays $180,000 to Kyle and $180,000 to James.  

Required:

i. Calculate the tax effects of the partner admission for Kyle and James and determine (fill in blanks) the capital accountbalances and adjusted cost base for each partner after the admission of Mike below:

Kyle James Mike
Opening Capital Accounts

Adjustment for Mike's Admission

Ending Capital Accounts (Accounting Values)