A$,$ B$,$ C and D $($all individuals$)$ form a general partnership in which they each have an equal interest in capital and profits. All the partners and the partnership are cash method taxpayers. In exchange for their respective partnership interests, each partner transfers the following assets, all of which have been held more than two years:$$

Partner$$

Asset$$

Adjusted$$

Basis$$

Fair Mkt$.$

Value$$

A$$

Land$$

$ $30,000$

$ $70,000$

$$

Goodwill$$

$0$

$30,000$

B$$

Equipment $($all $1245$ gain$)$

$25,000$

$45,000$

$$

Installment note from the sale of land$$

$20,000$

$25,000$

$$

Inventory$$

$5,000$

$30,000$

C$$

Building$$

$25,000$

$60,000$

$$

Land$$

$25,000$

$10,000$

$$

Receivables$$

$0$

$30,000$

D$$

Cash$$

$100,000$

$100,000$

$$

What are gains$/$losses realized and recognized by each partner?$$

What is each partner basis in partnership interest received?$$

What is each partner$$s holding period?$$

What is gain$/$loss recognized by the partnership for each contribution?$$

What is partnership basis in each of the assets contributed?$$

What is holding period in each the assets contributed?$$

How would the equipment be depreciated in hands of the partnership? How would any additional capital improvement made to the property on contribution be depreciated?$$

Is there any recapture to the partnership on the equipment contributed?$$

When the partnership collects the receivables, how would that be taxed?$$

Is there gain recognition on contribution of the installment note?$$

Is the built in loss on the land allocated to all the partners?$$

Create a balance sheet for the partnership on the conclusion of the exchange, making sure to show book and basis $($book and tax capital account$)$