Larry and Jessica form the L&J Partnership. Larry contributes property with an adjusted basis of $70,000, a fair market value of $200,000, and subject to a liability of $80,000 in exchange for a 40 percent interest in the partnership. Jessica receives a 60 percent interest in the partnership in exchange for services performed for the partnership, valued at $10,000, and cash of $170,000.

a. What amount of gain or loss must Larry recognize as a result of his transfer of the property to the partnership?

$ ______________________

b. What is Larry’s basis in his partnership interest immediately after the formation of the partnership including allocation of partnership liabilities?

$ ______________________

c. What is the partnership’s basis in the property contributed by Larry?

$ ______________________

d. What is Jessica’s basis in her partnership interest immediately after the formation of the partnership including allocation of partnership liabilities?

$ ______________________

e. How much income does Jessica recognize on the exchange?

$ ______________________