Larry and Moe form a partnership which maintains its records…

Questions

Lаrry аnd Mоe fоrm а partnership which maintains its recоrds on a calendar year basis. The balance sheet of 3S Partnership is as follows:                                                   Basis                                         Value Cash                                        $45                                          $45 Land                                          45                                          120 Inventory                                  54                                            45                                               $144                                        $210 Huey                                       $72                                        $105 Dewey                                       72                                          105                                               $144                                        $210  At the end of the current year, Curly will receive a 1/3 capital interest in exchange for services rendered. Curly’s interest is not subject to a substantial risk of forfeiture. For the current year, the income and expenses from operations are equal. Therefore, the only tax consequences for the year are those relating to the admission of Curly. a. Compute Curly’s basis in his partnership interest. b. Compute any gain or loss Curly may recognize as a result of his admission to the partnership. c. Prepare the balance sheet of 3S partnership immediately after the admission of Curly.