Required Information [The following information applies to the questions displayed below) Came D'Lake, Reed A. Green, and Doug A. Divot share a passion for golf and decide to go into the golf club manufacturing business together. On January 2, 2021. D'Lake, Green, and Divot form the Slicenhook Partnership, a general partnership. Slicenhook's main product will be a perimeter-weighted titanium driver with a patented graphite shaft. All three partners plan to actively participate in the business. The partners contribute the following property to form Slicenhook Partner Contribution Carrie D'lake Land, FMV $ 450,000 Basis 5460,080. Mortgage $ 50,00 Reed A Green Cash $400,000 DOUE A. Divot Cash $400,00 Carrte had recently acquired the land with the idea that she would contribute it to the newly formed partnership. The partners agree to share in profits and losses equally. Slicenhook elects a calendar year- end and the accrual method of accounting In addition, Slicenhook received a $1,500,000 recourse loan from Big Bank at the time the contributions were made. Slicenhook uses the proceeds from the loan and the cash contributions to build a state-of-the-art manufacturing facility ($1,200,000). purchase equipment ($600,000), and produce Inventory ($400,000). With the remaining cash, Slicenhook invests $45,000 in the stock of a privately owned graphite research company and retains $55,000 as working cash. Slicenhook operates on a just-in-time inventory system so it sells all inventory and collects all sales Immediately. That means that at the end of the year, Slicenhook does not carry any inventory of accounts receivable balances. During 2021, Slicenhook has the following operating results: Sales $ 1,126,00 Cost of goods sold 480,000 Interest income from tax-exempt bonds Qualified dividend income from stock 1,5 Operating expenses 125,000 bepreciation (tax) 517 on equipment $ 19,00 Equipment 1,000 Building 24,280 164, Interest expense on debt 120,000 The partnership is very successful in its first year. The success allows Slicenhook to use excess cash from operations to purchase $15,000 of tax-exempt bonds (you can see the interest income already reflected in the operating results). The partnership also makes a principal payment on its loan from Big Bank in the amount of $300.000 and a distribution of $100,000 to each of the partners on December 31, 2021 The partnership continues its success in 2022 with the following operating results: Sales Cast of goods sold Interest Income from tax-exempt bonds Qualified dividend income from stock Operating expenses Depreciation (tax) 31,200.00 420,000 we 1,500 132, The partnership continues its success in 2022 with the following operaang results: 90 2.50 Sales $ 1,200,000 Cost of goods sold 420.000 Interest Income from tax-exempt bonds Qualified dividend income from stock Operating expenses 12 Depreciation (tax) Equipment $307, Building 30. 127.000 Interest expense on debt 95.000 The operating expenses include a $1,800 trucking fine that one of its divers incurred for reckless driving and speeding and meals expense of $6,000 (the meals were not provided by a restaurant. By the end of 2022 Reed has had a falling out with Carrie and Doug and has decided to leave the partnership. He has located a potential buyer for his partnership interest. Inde Ruff indie has agreed to purchase Reed's interest in Slicenhook for $730.000 in cash and the assumption of Reed's share of Slicenhook's debt Care and Doug, however, are not certain that admming indie to the partnership is such a good idea. They want to consider having Slicenhook liquidate Reeds interest on January 1, 2023 As of January 1, 2023, Slicenhook has the following assets 575, 1, 45, Cash Investment-tax exempts Investment stock Egolprent-net of depreciation Building-net of depreciation Land Total Taxtasis 3 876, 15, 45, 333,00 1,165,00 460 $ 2,75 2, 4, 530, 53,499.00 Care and Doug propose that Slicenhook distribute the following to Reed in complete liquidation of his partnership Interest 525,00 -45, one 545, 45.00 Cash Investment stock Equipment-5200,00 cost, set of depreciation Total $54. 5730 Slicenhook has not purchased or sold any equipment since is ongina purchase just after formation 9-1. If Reed sells his interest in Slicenhook to Indie Ruff, what are the amount and character of his recognized gain or los 9-2. What is indie's basis in the partnership interest Complete this question by entering your answers in the tabs below. Fea: Reg 2 What is Indie's basis in the partnership interest