James and Sharon form an equal partnership in the current year. No special allocation is provided for in the partnership agreement. During the year James contributes land having a $80,000 basis and a $100,000 FMV in exchange for the initial partnership interest. In addition, the partnership earns $100,000 of ordinary income while partnership liabilities increase from zero to $60,000 by the end of the tax year. Also, the partnership earns
$10,000 of tax- exempt interest during the year and makes charitable contributions of $6,000. James withdraws $3 from the partnership.
What is James's basis at the end of the current year?

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The Answer of James and Sharon form an equal partnership in the current year. No special allocation is provided for in the partnership agreement. During the year James contributes land having a $80,000 basis and a $100,000 FMV in exchange for the initial partnership interest. In addition, the partnership earns $100,000 of ordinary income while partnership liabilities increase from zero to $60,000 by the end of the tax year. Also, the partnership earns
$10,000 of tax- exempt interest during the year and makes charitable contributions of $6,000. James withdraws $3 from the partnership.
What is James's basis at the end of the current year?

James and Sharon Form an Equal Partnership in the Current