Required information

$[$The following information applles 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 $$29,000.$ During January and February, the

partnership generates $$32,640$ of ordinary income and $$5,124$ of tax$-$exempt income. On March $1,$ Steven sells his

partnership interest to Juan for a cash payment of $$49,400.$ 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 $1$ 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