At the beginning of the current year, Able and Baker formed the AB Partnership by transferring cash and property to the partnership in exchange for a partnership interest, with each having a 50% interest Specifically, Able transferred property having a $50,000 FMV, $30,000 adjusted basis, and subject to a $10,000 liability, which the partnership assumed. Baker contributed $40,000 cash to the partnership. The partnership also borrowed $28,000 from the bank to use in its operations. All liabilities are recourse for which the partner have an equal economic risk of loss. During the current year, the partnership earned $24,000 of net ordinary income and reinvested this amount in new property. Read the requirements. Requirement a. What is the partnership's and each partner's gain or loss recognized on the formation of the partnership? (Complete all input fields. Enter a loss with a minus sign or parentheses. If no gain or loss is recognized by a partner or the partnership, enter a0.) Able Baker Partnership Requirement b. What is each partner's basis in his or her partnership interest at the end of the current year? Basis in Partnership Interest Able Baker Amount of Gain (Loss) 0 $ $ 0 0 51.000 71,000 Requirement c. For the partnership, prepare a tax and book balance sheet at the end of the current year. Begin by preparing the tax balance sheet. Cash Contributed property New property Total assets Liabilities Able, Capital Baker, Capital Total liabilities and capital accounts $ $ $ Tax 68,000 30,000 24,000 122,000 38,000 32,000 52,000 $ 122,000 Cash Contributed property Net pptry Tutela Liabilities Able, Capital Baker, Capital Total liabilities and capital accounts $ $ $ Able Beker Corporation Book 68,000 50,000 24.002 142.003 38.000 52,000 62,000 142,003 Requirement d. Assume instead that Able and Baker formed a corporation rather than a parnership. What is the corporation's and each shareholder's gain or loss recognized on the formation of the corporation? What is each shareholder's basis in his or har stock at the end of the current year? Compute each shareholders and the corporation's gain or loss. (Complete all input falds. Enter a loss with a minus sign or parentheses. I no gain or loss is recognized by a partner or the corporation, enter a 0.) Aunt of Ga (Loss)