Show me the steps to solve Comprehensive Problem $16-63($LO $16-1,$ LO $16-2,$ LO $16-3,$ LO $16-4,$ LO $16-5,$ LO $16-6)($Algo$)$

$[$The following information applies to the questions displayed below.$]$

Carrle D'Lake, Reed A$.$ Green, and Doug A$.$ Divot share a passion for golf and decide to go into the golf club

manufacturing business together. On January $2,2023,$ D'Lake, Green, and Divot form the Slicenhook Parthership, a

general partnership. Slicenhook's main product will be a perimeter$-$weighted titanlum driver with a patented graphite shaft.

All three partners plan to actively particlpate in the business. The partners contribute the following property to form

Slicenhook

Carrie had recently acquired the land with the idea that she would contribute it to the newly formed partnership. The

partners agree to share in profits and losses equally. Slicenhook elects a calendar year$-$end and the accrual method of

accounting.

In addition, Slicenhook recelved a $$1,776,000$ recourse loan from Big Bank at the time the contributions were made.

Slicenhook uses the proceeds from the loan and the cash contributions to build a state$-$of$-$the$-$art manufacturing facility

$($ $$1,315,000).$ purchase equipment $($ $$669,000),$ and produce Inventory $($ $$446,000).$ With the remaining cash. Slicenhook

invests $$68,000$ in the stock of a privately owned graphite research company and retains $($ $$78,000)$ as working cash.

Slicenhook operates on a Just$-$In$-$time Inventory system, so it sells all Inventory and collects all sales immediately. That

means that at the end of the year. Slicenhook does not carry any inventory or accounts recelvable balances. During $2023,$

Slicenhook has the following operating results:

The partnership is very successful in its first year. The success allows Slicenhook to use excess cash from operations to

purchase $$84,000$ of tax$-$exempt bonds $($you can see the interest Income already reflected in the operating results$).$ The

partnership also makes a principal payment on its loan from Big Bank in the amount of $$300,000$ and a distribution of

$$100,000$ to each of the partners on December $31,2023.$

The partnership continues its success in $2024$ with the following operating results:

The operating expenses include a $$2,950$ trucking fine that one of its drivers Incurred for reckless driving and speeding

and meals expense of $$6,000($the meals were not provided by a restaurant$).$

By the end of $2024,$ Reed has had a falling out with Carrle and Doug and has decided to leave the partnership. He has

located a potentlal buyer for his partnership interest, Indle Ruff. Indie has agreed to purchase Reed's Interest in Silcenhook

for $$1,098,000$ in cash and the assumption of Reed's share of Slicenhook's debt. Carrle and Doug, however, are not

certain that admitting Indie to the partnership is such a good Idea. They want to consider having Silcenhook liquidateBy the end of $2024,$ Reed has had a falling out with Carrle and Doug and has decided to leave the partnership. He has

located a potential buyer for his partnership interest, Indle Ruff. Indle has agreed to purchase Reed's interest in Slicenhook

for $$1,098,000$ in cash and the assumption of Reed's share of Slicenhook's debt. Carrle and Doug, however, are not

certain that admitting Indie to the partnership is such a good idea. They want to consider having Sicenhook Ilquidate

Reed's interest on January $1,2025.$ As of January $1,2025.$ Slicenhook has the following assets:

Carrie and Doug propose that Slicenhook distribute the following to Reed in complete liquidation of his partnership

Interest:

Slicenhook has not purchased or sold any equipment since its original purchase just after formation.

Comprehensive Problem $16-63$ Part I $($Algo$)$

Required: $$

$1-1.$ If Sicenhook distributes the assets proposed by Carrie and Doug in complete liquidation of Reed's partnership interest, what are

the amount and character of Reed's recognized gain or loss?

$1-2$ If Slicenhook distributes the assets proposed by Carrie and Doug in complete liquidation of Reed's partnership Interest, what is

Reed's basis In the distributed assets?

Complete this question by entering your answers in the tabs below.

If Slicenhook distributes the assets proposed by Carrie and Doug in complete liquidation of Reed's partnership interest, what

is Reed's basis in the distributed assets?

Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.