Problem $14-21($LO$.2,5)$

Lee, Brad, and Rick form the LBR Partnership on January $1$ of the current year. In return for a $25\backslash \%$ interest, Lee transfers property $($basis of $\backslash (\backslash$$ $15,000\backslash ),$ fair market value of $\backslash (\backslash$$ $17,500\backslash ))$ subject to a nonrecourse liability of $\backslash (\backslash$$ $10,000\backslash ).$ The liability is assumed by the partnership. Brad transfers property $($basis of $\backslash (\backslash$$ $16,000\backslash ),$ fair market value of $\backslash (\backslash$$ $7,500\backslash ))$ for a $\backslash (25\backslash \%\backslash )$ interest, and Rick transfers cash of $\backslash (\backslash$$ $15,000\backslash )$ for the remaining $50\backslash \%$ interest.

a$.$ Lee recognizes no gain or loss $\backslash (\backslash$checkmark $\backslash$checkmark $\backslash )$ on the transfer.

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b$.$ After the contribution, Lee's basis in his interest in the partnership is $\backslash (\backslash$$ $\backslash )$

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c$.$ Brad recognizes : $\backslash (\backslash$checkmark $\backslash )$ on the transfer.

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d$.$ Brad's basis in his interest in the partnership is $\backslash (\backslash$$ $\backslash )$