- X Data table Basis Partnership Individual Asset to Partner FMV Interest Abe Cash 270,000 $ 270,000 30% Ben Accounts receivable 0 90,000 10% Curt Office equipment 220,000 225,000 25% Darren Land 165,000 135,000 15% Ethan Building 25,000 235,000 15% Flash Services 45,000 5% Print Done- X Requirements art 7iz a. How much gain, loss, or income must each partner recognize as a result of itn the formation? b. How much gain, loss, or income must the partnership recognize as a result of the formation? c. What is each partner's basis in his partnership interest? d. What is the partnership's basis in its assets? e. What is the partnership's initial book value of each asset? f. What effects do the depreciation recapture provisions have on the property SS contributions? g. How would your answer to Part a change if Flash received only a profits interest? h. What are the tax consequences to the partners and the partnership when the partnership sells for $129,000 the land contributed by Darren? Prior to ip the sale, the partnership held the land as an investment for two years. the Print DoneOn May 31, six brothers decided to form the Garrison Brothers Partnership to publish and print children's stories. The The following other information about the contribution: contributions of the brothers and their partnership interests are listed below. They share the economic risk of loss from i (Click the icon to view the other information.) liabilities according to their partnership interests. (Click the icon to view the contributions.) Read the requirements. Requirement a. How much gain, loss, or income must each partner recognize as a result of the formation? Identify the gain, loss, or income that each partner must recognize as a result of the formation, one partner at a time. (If no gain, loss, or income is recognized by a partner, enter a "0" i blank.) Amount of Gain, Individual Loss, or Income Description Abe Ben Curt Darren Ethan Flash 45000 Gain Requirement b. How much gain, loss, or income must the partnership recognize as a result of the formation? (If no gain, loss, or income is recognized by the partnership, enter a "0" in blank.) Amount of Gain, Individual Loss, or Income Description Partnership Requirement c. What is each partner's basis in his partnership interest? (Complete all answer boxes. Enter a "0" for any zero balances.) Basis in Individual Partnership InterestOn May 31, six brothers decided to form the Garrison Brothers Partnership to publish and print children's stories. The The following other information about the contribution contributions of the brothers and their partnership interests are listed below. They share the economic risk of loss from i (Click the icon to view the other information.) liabilities according to their partnership interests. (Click the icon to view the contributions.) Read the requirements. Requirement c. What is each partner's basis in his partnership interest? (Complete all answer boxes. Enter a "0" for any zero balances.) Basis in Individual Partnership Interest Abe Ben Curt Darren Ethan Flash Requirements d. and e. What is the partnership's basis in its assets? What is the partnership's initial book value of each asset? (Complete all answer boxes. Enter a "0" for any zero b Partnership's Initial Book Asset Basis in Asset Value of Asset Cash Accounts receivable Office equipment Land Building Organizational expenses Requirement f. What effects do the depreciation recapture provisions have on the property contributions?On May 31, six brothers decided to form the Garrison Brothers Partnership to publish and print children's stories. The The following other information about the contribution: contributions of the brothers and their partnership interests are listed below. They share the economic risk of loss from i (Click the icon to view the other information.) liabilities according to their partnership interests. (Click the icon to view the contributions.) Read the requirements. Requirement f. What effects do the depreciation recapture provisions have on the property contributions? O A. The office equipment has no depreciation recapture potential because straight-line MACRS depreciation has been used. However, part or all of a subsequent gain will be class possibly an additional 3.8%) capital gains tax rate. The depreciation recapture potential for the building carries over to the partnership. The partnership will recognize the recap taxable transaction. O B. The building has no depreciation recapture potential because straight-line MACRS depreciation has been used. However, part or all of a subsequent gain will be classified as additional 3.8%) capital gains tax rate. The depreciation recapture potential for the office equipment carries over to the partnership. The partnership will recognize the recaptur transaction. O C. Neither the building nor the office equipment are subject to the depreciation recapture potential because straight-line MACRS depreciation has been used. However, part or al gain subject to the 25% (and possibly an additional 3.8%) capital gains tax rate. O D. Both the building and the office equipment are subject to the recapture provision. The partnership will recognize the recapture when it sells or exchanges the properties in a ta Requirement g. How would your answer to Part a change if Flash received only a profits interest? If Flash's profits interest had an ascertainable value, If the profits interest has no ascertainable value at the time of the transaction, Requirement h. What are the tax consequences to the partners and the partnership when the partnership sells for $129,000 the land contributed by Darren? Prior to the sale, the part Begin by showing any pre- and postcontribution gains or losses for each of the partners. (Complete all answer boxes. Enter a loss with a minus sign or parentheses. Enter a "0" for an Precontribution Postcontribution Individual Gain (Loss) Gain (Loss) AbeOn May 31, six brothers decided to form the Garrison Brothers Partnership to publish and print children's stories. The The following other information about the contribution: contributions of the brothers and their partnership interests are listed below. They share the economic risk of loss from i (Click the icon to view the other information.) liabilities according to their partnership interests. (Click the icon to view the contributions.) Read the requirements. Requirement g. How would your answer to Part a change if Flash received only a profits interest? If Flash's profits interest had an ascertainable value, if the profits interest has no ascertainable value at the time of the transaction, Requirement h. What are the tax consequences to the partners and the partnership when the partnership sells for $129,000 the land contributed by Darren? Prior to the sale, the part Begin by showing any pre- and postcontribution gains or losses for each of the partners. (Complete all answer boxes. Enter a loss with a minus sign or parentheses. Enter a "0" for any Precontribution Postcontribution Individual Gain (Loss) Gain (LOSS) Abe Ben Curt Darren Ethan Flash Total Now show how much gain or loss, if any, the partnership will recognize on the sale of the land. (Enter a loss with a minus sign or parentheses. Enter a "0" if no gain or loss is recognize The partnership will recognize a gain (loss) on the sale of the land