Sally contributes farm machinery with a $150,000 FMV, a $125,000 basis, and a $50,000 note owed to the AB Bank to a new partnership in exchange for a 25% partnership interest. Total partnership liabilities after Sally’s contribution are $340,000. What gain or loss do Sally and the partnership recognize on the property contribution to the partnership? What is the partnership’s basis and holding period in the machinery? What is Sally’s basis in her partnership interest? How would your answers to this problem change (if at all) had Sally’s asset contribution instead been made to an existing corporation for a 25% stock interest?