! Required information [The following information applies to the questions displayed below.] Laurel contributed equipment worth $130,000, purchased 8 months ago for $162,000 cash and used in her sole proprietorship, to Sand Creek LLC in exchange for a 25 percent profits and capital interest in the LLC. Laurel agreed to guarantee all $10,600 of Sand Creek's accounts payable, but she did not guarantee any portion of the $65,000 nonrecourse mortgage securing Sand Creek's office building. Other than the accounts payable and mortgage, Sand Creek does not have any liabilities to other creditors. a. What is Laurel's initial tax basis in her LLC interest? Tax basis c. What is Sand Creek's initial basis in the contributed property? Initial basis