On 1 January 20X1, in exchange for a 12.5% (1/8th) interest in their newly formed K entity, owners make the contributions listed below. Each receives a capital account (C/A) worth $40,000. As diagram note e indicates, G contributes encumbered property. Contribution Owner Item AB FMV holding Period (Mos.) Potential B Recapture A Cash $ 40,000 $ 40,000 N/A B Investment (Stock)a $48,000 $40,000 24 C Accts. Rec. b $0 $40,000 2 D Inventory $35,000 $40,000 6 E Furniture $45,000 $40,000 15 $10,000 F Equipment $25,000 $40,000 20 $15,000 G Building $250,000 $300,000e 48 H 197 Intangible Assets $30,000 $40,000 18 $5,000 a Capital Asset. b Ordinary Asset. From providing services to customers. c Ordinary Asset. d 1231 Asset. e Since the K entity assumes the mortgage ($260,000) on the building, the fair market value (FMV) of G's contribution is $40,000 ($300,000 - $260,000). (a) Calculate each owner's initial outside (O/S) basis. (b) Calculate aggregate outside (O/S) basis. (c) Compare aggregate inside (I/S) basis and aggregate outside (O/S) basis. (d) Determine the K entity's holding period in each asset. (e) Determine each owner's holding period in his or her K entity interest