On January 2 of the current year, Fenton and Myers form the FM LLC. Their contributions to the LLC are as follows.

	Adjusted Basis		Fair Market Value
From Fenton:
Cash	$75,000		$75,000
Accounts receivable	0		135,000
Inventory	37,500		93,750
From Myers:
Cash	303,750		303,750

Within 30 days of formation, FM collects the receivables and sells the inventory for $93,750 cash.

FM realized the following income in the current year from these transactions: Ordinary income of $ from collecting cash basis accounts receivable. Ordinary income of $ from sale of inventory.