Question: On February 1 , 2 0 0 9 , Kay and Larry form the KL General Partnership as equal partners by contributing the following assets:

On February 1,2009, Kay and Larry form the KL General Partnership as equal partners by contributing the following assets:
Kay purchased the equipment on December 15,1996, for \(\$ \$ 75,000\). Larry purchased the land on March 5,1983, and it is subject to a \(\$ 60,000\) liability, which the partnership assumes.
A. What is each partner's realized and recognized gain or loss?
B. What is each partner's basis in his/her partnership interest? When does his/her holding period begin?
C. Prepare the partnership's tax balance sheet.
D. Prepare the partnership's FMV balance sheet.
On February 1,2009, Kay and Larry form the KL General Partnership

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