Moe, Johnny, and Raymond form a partnership and contribute the following assets:

Johnny€™s building has a mortgage of $60,000, which the partnership assumes.
a. Do any of the partners recognize any gain? If so, how much and why?
b. What is the basis for each partner in his partnership interest?
c. What is the basis to the partnership in each asset?
d. How would your answer change with respect to Johnny if the basis in the building were $45,000?

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FMV Basis Partnership % Moe's inventory 50,000 10,000 Johnny's building $110,000 80,000 Raymond's cash 50,000 50,000 33.3% 33.3% 33.3%