Sam and Drew are equal partners in SD LLC formed on June 1 of the current year. Sam contributed land that he inherited from his uncle in 2009. Sam's uncle purchased the land in 1984 for $30,000. The land was worth $100,000 when Sam's uncle died. The fair market value of the land was $200,000 at the date it was contributed to the LLC.

Drew has significant experience developing real estate. After the LLC is formed, he will prepare a plan for developing the property and secure zoning approvals for the LLC. Drew would normally bill a third party $50,000 for these efforts. Drew also will contribute $150,000 of cash in exchange for his 50% interest in the LLC. The value of his 50% interest is $200,000.

a. Construct an opening balance sheet for SD, LLC, reflecting the LLC's basis in the assets and the fair market value of these assets.

Assets	Basis	FMV
Cash	$	$
Land	$	$
Land improvements	$	$
Total assets	$	$
Sam's capital	$	$
Drew's capital	$	$
Total capital	$	$