Required Information [The following information applies to the questions displayed below.] Mary and Scott formed a...

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Required Information [The following information applies to the questions displayed below.] Mary and Scott formed a partnership that maintains its records on a calendar-year basis. The balance sheet of the MS Partnership at year-end is as follows: Fair Market Basis Cash $ 72 Land 60 Value $ 72 132 Inventory 66 48 $198 $ 252 Mary Scott $ 99 99 $198 $ 252 $ 126 126 At the end of the current year, Kari will receive a one-third capital interest only in exchange for services rendered. Kari's interest will not be subject to a substantial risk of forfeiture, and the costs for the type of services she provided are typically not capitalized by the partnership. For the current year, the income and expenses from operations are equal. Consequently, the only tax consequences for the year are those relating to the admission of Kari to the partnership. (Leave no answer blank. Enter zero If applicable. Do not round Intermediate calculations.) c. Prepare a balance sheet of the partnership immediately after Kari's admission showing the partners' tax capital accounts and capital accounts stated at fair market value. Answer is complete but not entirely correct. MS Partnership Balance Sheet Tax Basis 704(b)/FMV Assets: Cash $ 72 $ 72 Land 60 132 Inventory 66 48 Totals $ 198 $ 252 Capital: Capital- $ 0 x $ 84 Mary Capital- 0 84 Scott Capital-Kari 84 84 Totals $ 84 $ 252 Required Information [The following information applies to the questions displayed below.] Mary and Scott formed a partnership that maintains its records on a calendar-year basis. The balance sheet of the MS Partnership at year-end is as follows: Fair Market Basis Cash $ 72 Land 60 Value $ 72 132 Inventory 66 48 $198 $ 252 Mary Scott $ 99 99 $198 $ 252 $ 126 126 At the end of the current year, Kari will receive a one-third capital interest only in exchange for services rendered. Kari's interest will not be subject to a substantial risk of forfeiture, and the costs for the type of services she provided are typically not capitalized by the partnership. For the current year, the income and expenses from operations are equal. Consequently, the only tax consequences for the year are those relating to the admission of Kari to the partnership. (Leave no answer blank. Enter zero If applicable. Do not round Intermediate calculations.) c. Prepare a balance sheet of the partnership immediately after Kari's admission showing the partners' tax capital accounts and capital accounts stated at fair market value. Answer is complete but not entirely correct. MS Partnership Balance Sheet Tax Basis 704(b)/FMV Assets: Cash $ 72 $ 72 Land 60 132 Inventory 66 48 Totals $ 198 $ 252 Capital: Capital- $ 0 x $ 84 Mary Capital- 0 84 Scott Capital-Kari 84 84 Totals $ 84 $ 252