Tracy and Mitchell form the TM General Partnership as equal partners. They make the following contributions: (Click the icon to view the contributions.) The TM Partnership assumes the $70,000 recourse mortgage on the building that Mitchell contributes, and the partners share the economic risk of loss on the mortgage equally. Mitchell has claimed $36,000 in straight-line depreciation under the MACRS rules on the building. Tracy is a stockbroker and contributed securities from her inventory. The partnership will hold them as an investment. a. C. What amount and character of gain or loss must each partner recognize on the formation of the partnership? b. What is each partner's basis in his or her partnership interest? What is the partnership's basis in each asset? d. What is the partnership's initial book value of each asset? The partnership holds the securities for two years and then sells them for $22,500. What amount and character of gain must the partnership and each partner report? e. Data table Individual Asset Basis to Partner EMV Tracy Cash $ 55,000 $ 55,000 Inventory (securities) 9,000 14,000 Mitchell Land 70,000 50,000 Building 70,000 80,000 Tracy and Mitchell form the TM General Partnership as equal partners. They make the following contributions: (Click the icon to view the contributions.) The TM Partnership assumes the $70,000 recourse mortgage on the building that Mitchell contributes, and the partners share the economic risk of loss on the mortgage equally. Mitchell has claimed $36,000 in straight-line depreciation under the MACRS rules on the building. Tracy is a stockbroker and contributed securities from her inventory. The partnership will hold them as an investment. a. C. What amount and character of gain or loss must each partner recognize on the formation of the partnership? b. What is each partner's basis in his or her partnership interest? What is the partnership's basis in each asset? d. What is the partnership's initial book value of each asset? The partnership holds the securities for two years and then sells them for $22,500. What amount and character of gain must the partnership and each partner report? e. Data table Individual Asset Basis to Partner EMV Tracy Cash $ 55,000 $ 55,000 Inventory (securities) 9,000 14,000 Mitchell Land 70,000 50,000 Building 70,000 80,000