Jane acquired a 40% interest in the Waterstone General Partnership by contributing investment land with an adjusted basis of $24,000 and a fair

Jane acquired a 40% interest in the Waterstone General Partnership bycontributing investment land with an adjusted basis of $24,000 and a fair market value of$105,000;Jane had originally acquired the land on 2/2/1991. The land was subject to a $35,000mortgage which was assumed by the Waterstone General Partnership as part of the deal.Mike acquired a 60% partnership interest in the partnership in exchange for a capitalcontribution of $105,000 in cash. Both capital contributions occurred on 1 January 2010.The partnership used the land contributed by Jane to operate a parking lot.During 2010, the partnership had net rental income from renting out the land of$160,000. In addition, on 25 December 2010, the land was sold for a total sales price of$125,000 ($90,000 of cash PLUS the buyer assumed the $35,000 mortgage).The partnership distributed $20,000 of cash during 2010 ($8,000 to Jane & $12,000 toMike).In addition, the partnership borrowed $40,000 during 2010, and this recourse loan wasstill outstanding as of 12/31/2010.REQUIRED:A. How much and what type of income must Jane report from 2010partnership activity?B. What is Jane’s basis in the partnership @12/31/2010?

Part AJane Must report the following income form partnership activityRental Income to the extent of 40% - $64,000 Capital Gains of the land to the extent 40% - $26,400 (125,000 – 35,000 –...