TXX5771-please answer with explanations

Charlie and Dan are equal Members in the CD Limited Liability Company (LLC).Charlie contributes Cash of $20,000 and Dan contributes equipment valued at $20,000, in which his Adjusted Basis is $10,000. The equipment contributed by Dan is depreciable for federal income tax purposes using a straight line method at the rate of 20% per year (ignoring the first year convention).Each Member's Capital Account is credited with the $20,000 value of his contribution.

Assuming that the LLC's total income over the remaining 5 year life of the equipment exceeds its total losses and deductions, other than depreciation, by $20,000 determine

(a) each of Member's Tax Basis in his Member Interest in the LLC

(b)each Member's Capital Account

Consider: 704(c) and the Regulations under that section; the "Traditional Method"