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 $29,250. During January and February, the partnership generates $32,970 of ordinary income and $5,202 of tax-exempt income. On March 1, Steven sells his partnership interest to Juan for a cash payment of $49,950. The partnership has the following assets and no liabilities at the sale date: Cash Land held for investment Totals Tax Basis $34,500 FMV $ 34,500 34,500 69,000 $ 69,000 $103,500 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? d. What is the partnership's basis in the assets following the sale?

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.