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Required information [ The following information applles to the questions displayed below ] Allison, Keesha, and Steven each owns an equal interest in KAS Partnership,
Required information
The following information applles to the questions displayed below
Allison, Keesha, and Steven each owns an equal interest in KAS Partnership, a calendaryearend, cashmethod entity. On
January of the current year, Steven's basis in his partnership interest is $ During January and February, the
partnership generates $ of ordinary income and $ of taxexempt income. On March Steven sells his
partnership interest to Juan for a cash payment of $ The parthership has the following assets and no liabilities at
the sale date:
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 just prior to the sale?
b What are the amount and character of Steven's recognized gain or loss on the sale?
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
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