Reference no: EM133291493

Barbara DeMarco, CPA operates a lucrative return preparation business as a sole proprietorship focusing on all types of individuals and businesses. Her friend Roberta Heckleman, CPA operates as a sole proprietorship too. Barbara and Roberta decide to merge their businesses and operate under the name DeMarco and Hecklleman, CPAs as a partnership. Barbara contributes her client list with an FMV of $80,000 and a basis of $80,000 and her land with an FMV of $250,000 and a basis of $75,000. There are no liabilities associated with the land. Roberta contributes her tax law library with an FMV of $75,000 and a basis of $95,000 and $255,000 cash. Three years later DeMarco and Heckleman, CPAs sell the land for $400,000 to an unrelated party. When the land is sold, 1. how much of the gain should be allocated to each partner of DeMarco and Heckleman, 2. CPAs if Barbara and Roberta are each 60:40 percent partners, respectively?