ANSWER THE QUESTION AND SHOW ANY CALCULATIONS

During $2022,$ Mark Markson, Cara Carlos, and Doug Davis decided to form a partnership called Three Pigs BBQ$.$ Mark was only willing to join the partnership as a limited partner. In return for gaining the limited liability, Mark agreed to take a smaller share of the profits to compensate the other two partners. This allocation agreement meets the substantial economic effect criterion of the regulations. In addition, the partnership agreement stipulated that Cara and Doug are required to restore any deficit balances in their capital accounts.

In forming the partnership, Mark contributed cash of $$25,000$ in return for a $25\%$ interest in capital and a $15\%$ interest in profits. Cara contributed land used in business, with an FMV of $$50,000$ and an adjusted basis of $$40,000.$ In return, she received a $50\%$ interest in capital and a $55\%$ interest in profits. Finally, Doug contributed machinery used in his business with an FMV of $$25,000$ and a basis of $$22,000.$ In return, he received the remaining $25\%$ interest in capital and a $30\%$ interest in profits.

After forming, the partnership purchased equipment using $$20,000$ of th

e cash contributed by Mark and incurring a recourse liability of $$80,000.$

Using this information, prepare the tax workpapers using an Excel document in which you determine and report each partner$$s basis in their partnership interest at the end of this first year. SHOW ALL CALCULATION