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.

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?

$ ____________