On December 31, 2018, Chloe, Ursula, Nancy and Yvonne formed CUNY Electronics LLC, a limited liability company created under the laws of the State of New York, for the purpose designing, manufacturing and distributing electronic semi-conductor microchips. The Operating Agreement provides that Chloe, Ursula, Nany, and Yvonne shall share in profits and losses equally. Each member contributed the following property for their share of the equity interest. Chloe, Ursula, Nany, and Yvonne elected themselves as officers of CUNY Electronics LLC. Other than the formation of the partnership and capital contribution, the partnership had no operating activity in 2018:

FMV Adj. Basis

1. Chloe York * Building $1,500,000 $975,000

* Land 150,000 150,000 *

Mortgage (Debt) 250,000 250,000

2. Ursula Lehman * Inventory 900,000 400,000

*Accounts Receivable 500,000 -0-

3. Nancy Hunter * Cash 875,000 875,000

* Patent 525,000 525,000

4. Yvonne Baruch * Manufacturing Equipment 1,000.000 900,000

* Accounts Payable 100,000 100,000

In the tax year ending December 31, 2019, all four members each received $250,000 for services rendered. The compensation is not based on the profits of the company. The company adopted a calendar year and is an accrual basis taxpayer. For the tax year ending December 31, 2019, the company had the following activity:

Sales on Account $9,450,000

Inventory purchases 2,250,000

Ending Inventory 375,000

Interest Income from Investments 15,000

Supplies 62,000

Telephone expense 48,700

Meals and Entertainment 216,300

Employee salaries 985,000

Marketing 325,000

Travel 115,000

Utilities 65,000

Insurance 48,000

Repairs & Maintenance 23,100

Interest Expense 28,000

Employment benefits 29,650

Payroll taxes 121,220

Employee bonus accrual paid 2/15/2019 400,000

Officers Life Insurance 80,000

Purchased New Truck on Credit 120,000

Purchased New Equipment on Credit 420,000

Improvements made to Building 2d Mortgage 400,000

Contribution to Cancer Research Society [a 501(c)(3)] 525,000

2019 Account Receivables Collected in 2019 8,665,000

2018 Account Receivables Collected in 2019 400,000

Accounts Payable Paid in 2019 45,000

Recorded a Reserve for Bad Debts 125,000

Bad debt right-off 65,000

Book Depreciation:

* Building 45,000

* Equipment 175,000

* Truck 35,000

* Improvements 30,000

Book Income Compute

Paid distribution to each Partner on 12/15/2019 100,000

Miscellaneous: The company elected to take the maximum 179 on the new equipment only. The four members devote 100% of their time to the business. The bonus accrual is not included in employee salaries. All depreciable assets acquired in 2019 was placed in service on July 01, 2019. The EIN is 22-3658908.

a. Prepare the 2019 partnership tax income return for of CUNY Electronics LLC;

b. Prepare excel worksheet showing CUNYs basis in assets contributed at December 31, 2018 and 2019;

c. Prepare a excel worksheet showing each partners outside basis as of December 31, 2018 and 2019;