a. Assuming KASs operating agreement provides for an interim closing of the books when partners interests change during the year, what is Stevens basis in his partnership interest on March 1 just prior to the sale? c. What is Juans initial basis in the partnership interest? d. What is the partnerships basis in the assets following the sale?

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 $27,000. During January and February, the partnership generates $30,000 of ordinary income and $4,500 of tax-exempt income. On March 1 , Steven sells his partnership interest to Juan for a cash payment of $45,000. The partnership has the following assets and no liabilities at the sale date