A and B formed the equal AB Partnership on January 1 of the current year. A contributed $100,000 of cash and land with a fair market value of $112,500 and an adjusted basis of $93,750. B contributed equipment with a fair market value of $212,500 and an adjusted basis of $25,000. B had used the equipment in his sole proprietorship.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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A and B formed the equal AB Partnership on January 1 of the current year. A contributed $100,000 of
cash and land with a fair market value of $112,500 and an adjusted basis of $93,750. B contributed
equipment with a fair market value of $212,500 and an adjusted basis of $25,000. B had used the
equipment in his sole proprietorship.
Compute the following:

B’s gain recognized__________________________

AB’s gain recognized__________________________

A’s basis in his partnership interest__________________________

B’s basis in his partnership interest__________________________

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