By signing my name below, I affirm that I have not accepted or discussed and will not provide ordiscuss information about the contents of this assignment from, to, or with another student. Print Your Name Clearly:_______________________ Signature: _______________________Print Your Section Number (e.g. T/TH 9 am or Sec. 006): ______________________________Assignment 10 (Chapter 20) (Total Possible Points: 100)ACCT 351/551Note:Make sure the different problems and answers are clearly marked. If a multipart question, make sure it is clear which part the answer relates to. In addition, make sure to circle, highlight, or double underline your final answers.If you make it too difficult to find the answer within your work, I will not count the answer correct. If you have multiple answers, I willnot count it correct even if one of the answers is correct. Staple multiple pages together and makesure your name is on each page. If pages come loose without a name, the grading will be only on what is left attached.Show your workthroughout. If your answer is wrong and you do not show your work, then I cannot offer any partial credit. Round dollar amounts to the nearest dollar ($3,500.0372 $3,500). 1.Three individuals want to start a catering company and to operate it as an LLC, which will receive partnership tax treatment as the default for tax purposes. Chen contributes a van for transporting the food with a fair market value of $32,000 and an adjusted tax basis of $29,000 for a 25 percent profits and capital interest. Bo contributes a bakery shopwith a fair market value of $230,000 and an adjusted tax basis of $175,000 for a 50 percent profits and capital interest. Jing contributes $60,000 in cash for a 25 percent profits and capital interest. The LLC does not have any debt (either from the partners or that it takes on directly from a bank).a.(4 points for each partner’s full answer) Do any of the partners have to recognize a taxable gain (or loss) on the transactions above? If so, how much gain(loss) for each partner?b.(4 points for each partner) What is each partner’s initial outside tax basis in his or her LLC interest?c.(4 points for each asset) What is the LLC’s tax basis in the property received (thevan, shop, and cash)?d.(4 points) Prepare a balance sheet using the tax basis method (as opposed to FMVmethod) from the above transactions.