Jarrod and Smith formed Major Partnership as equal partners by contributing the assets below: Jarrod: Cash, adjusted basis $45,000, fair market value $45,000 Smith: Land, adjusted basis $30,000, fair market value $57,000 The land was held by Smith as a capital asset, subject to a $12,000 mortgage, that was assumed by Major. What was Smith's basis in the partnership interest upon formation of the partnership?

Afirm wants to strengthen its financial position. which of the following actions would increase its current ratio? a. reduce the company's days' sales outstanding to the industry average and use the resulting cash savings to purchase plant and equipment. b. use cash to repurchase some of the company's own stock. c. borrow using short-term debt and use the proceeds to repay debt that has a maturity of more than one year. d. issue new stock, then use some of the proceeds to purchase additional inventory and hold the remainder as cash. e. use cash to increase inventory holdings.