What is John recognized gain or loss on the contribution

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Problem - John and Linda form the J&L Partnership. John contributes cash of $36,000 for a 40 percent interest in the partnership. Linda contributes equipment worth $54,000 with an adjusted basis of $17,500 for a 60 percent partnership interest.

Required -

1. What is John's recognized gain or loss on the contribution?

2. What is John's basis in his partnership interest?

3. What is Linda's recognized gain or loss on the contribution?

4. What is Linda's basis in her partnership interest?

5. What is J&L Partnership's basis in the equipment received from Linda?

Reference no: EM132677033

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