PLR 200340024 (Apr B. Questions and Problems fair market value of $15,000 and an adjusted basis of $10,000, in exchange for a 75% L. A and B form Partnership AB that is not an LLP. A contributes property with a interest in AB, B contributes $5,000 for a 25% interest in AB. During the first year of operations, the following occurs: a. Taxable income of $20,000 b. Charitable contributions of $1,000 c. AB borrows $10,000 on a recourse basis. d. Tax-exempt income of $2,000 e. Distributions of $30,000, $22,500 to A and $7,500 to B i. What are A's and B's bases for their partnership interests at the end of the first year? ii. What are A's and B's tax basis capital accounts at the end of the first year