Mary and Scott formed a partnership that maintains its records on a calendar-year basis. The balance...

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Mary and Scott formed a partnership that maintains its records on a calendar-year basis. The balance sheet of the MS Partnership at year-end is as follows: Fair Market Basis Value Cash $ 84 $ 84 Land 96 192 Inventory 60 36 $240 $ 312 Mary $120 $ 156 Scott 120 156 $240 $ 312 At the end of the current year, Kari will receive a one-third capital interest only in exchange for services rendered. Kari's interest will not be subject to a substantial risk of forfeiture and the costs for the type of services she provided are typically not capitalized by the partnership. For the current year, the income and expenses from operations are equal. Consequently, the only tax consequences for the year are those relating to the admission of Kari to the partnership. (Leave no answer blank. Enter zero if applicable. Do not round intermediate calculations.) a. Compute and characterize any gain or loss Kari may have to recognize as a result of her admission to the partnership. Gain or loss recognized as capital gain n/a ordinary income b. Compute Kari's basis in her partnership interest. Basis c. Prepare a balance sheet of the partnership immediately after Kari's admission showing the partners' tax capital accounts and capital accounts stated at fair market value. MS Partnership Balance Sheet Tax Basis 704(b)/FMV Assets: Cash Land Inventory Totals Capital: Capital-Mary Capital-Scott Capital-Kari Totals Mary and Scott formed a partnership that maintains its records on a calendar-year basis. The balance sheet of the MS Partnership at year-end is as follows: Fair Market Basis Value Cash $ 84 $ 84 Land 96 192 Inventory 60 36 $240 $ 312 Mary $120 $ 156 Scott 120 156 $240 $ 312 At the end of the current year, Kari will receive a one-third capital interest only in exchange for services rendered. Kari's interest will not be subject to a substantial risk of forfeiture and the costs for the type of services she provided are typically not capitalized by the partnership. For the current year, the income and expenses from operations are equal. Consequently, the only tax consequences for the year are those relating to the admission of Kari to the partnership. (Leave no answer blank. Enter zero if applicable. Do not round intermediate calculations.) a. Compute and characterize any gain or loss Kari may have to recognize as a result of her admission to the partnership. Gain or loss recognized as capital gain n/a ordinary income b. Compute Kari's basis in her partnership interest. Basis c. Prepare a balance sheet of the partnership immediately after Kari's admission showing the partners' tax capital accounts and capital accounts stated at fair market value. MS Partnership Balance Sheet Tax Basis 704(b)/FMV Assets: Cash Land Inventory Totals Capital: Capital-Mary Capital-Scott Capital-Kari Totals