John, Trey and Tim form JTT LLC in 2013

PROBLEM 4

John, Trey and Tim form JTT LLC in 2013 as a partnership by contributing cash (John – $60k, Trey – $30k, Tim – $10k). In 2013 JTT has the following activity:

Ordinary Income                                 $220,000

Charitable Contributions                     $15,000

‘179 Expense                                     $40,000

Distributions                                       $90,000

Total Nonrecourse Liabilities              $140,000

N/P to Trey                                         $70,000

Assuming all activity is allocated based on ownership %, calculate each partners= basis at the end of 2013.