Question: A and B form limited partnership AB.B will be the General partner and A will be the limited partner.Each partner contributes property subject to recourse

A and B form limited partnership AB.B will be the General partner and A will be the limited partner.Each partner contributes property subject to recourse liabilities.The fair market value (FMV) and the basis of the property contributed, and the liabilities assumed by FG are as follows:

PartnerAssetAdjusted BasisGross FMVDebtNet FMV

ABuilding #1250,000750,000500,000250,000

BBuilding #2250,000450,000200,000250,000

How much gain or loss, if any, will be recognized by the partners as a result of their contribution into AB?What is each partner's basis in their partnership interest immediately after formation?

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