Three individuals form the ABC partnership and each contribute the following to form the partnership:

• Cash: $35,000.00
• Future services to be rendered to the partnership worth: $350,000
• Real property with a basis of $300,000.00 and a fair market value of $350,000.00.

Tasks:

1. What is each partners original basis in the partnership interest?
2. What is the partnerships basis in each partners contribution?