! Required information [The following information applies to the questions displayed below.) Allison, Keesha, and Steven each owns an equal interest in KAS Partnership, a calendar-year-end, cash- method entity. On January 1 of the current year, Steven's basis in his partnership interest is $31,500. During January and February, the partnership generates $35,940 of ordinary income and $5,904 of tax-exempt income. On March 1, Steven sells his partnership interest to Juan for a cash payment of $54,900. The partnership has the following assets and no liabilities at the sale date: Cash Land held for investment Totals Tax Basis $ 39,000 39,000 $ 78,000 FMV $ 39,000 78,000 $ 117,000 a. Assuming KAS's operating agreement provides for an interim closing of the books when partners' interests change during the year, what is Steven's basis in his partnership interest on March 1 just prior to the sale? Basis b. What are the amount and character of Steven's recognized gain or loss on the sale? Neither gain nor loss recognized $9,452 of ordinary income $26,856 of ordinary income $9,452 of capital gain $26,856 of capital gain c. What is Juan's initial basis in the partnership interest? Basis d. What is the partnership's basis in the assets following the sale? Basis