Question: Kevin, Gerald and Robb formed HyperTech Systems, LLC. No election was made as to the status of this entity, as they wanted to leave it

Kevin, Gerald and Robb formed HyperTech Systems, LLC. No election was made as to the status of this entity, as they wanted to leave it as a partnership. Kevin and Robb contributed $245,000 to the partnership. Gerald contributed the following assets:

Asset	Basis	Fair Market Value
Cash	15,000	15,000
Land	120,000	440,000
	135,00	445,000

Asset Basis Fair Market Value Cash $15,000 $15,000 Land $120,000 $440,000 $135,000 $445,000

a. What is the tax basis of Kevin and Robb in the partnership?

b. Assume Gerald is asking for an equal part in the partnership in terms of capital? What will be the tax effects to Gerald?

c. Assume Gerald is asking for an equal share in the partnership in terms of profits and losses only. What are the tax effect to Kevin, Robb and Gerald?

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