1) Frank and Bob are equal members in Soxy Socks, LLC. When forming the LLC, Frank contributed $56,000 in cash and $56,000 worth of equipment. Frank's adjusted basis in the equipment was $41,000. Bob contributed $56,000 in cash and $56,000 worth of land. Bob's adjusted basis in the land was $24,000. On 3/15/X4, Soxy Socks sells the land Bob contributed for $64,000. How much gain (loss) related to this transaction will Bob report on his X4 return?

a. $8000

b. $12,000

c. $36,000

d. $44,000

2) Sue and Andrew form SA general partnership. Each person receives an equal interest in the newly created partnership. Sue contributes $16,000 of cash and land with a fair market value of $61,000. Her basis in the land is $26,000. Andrew contributes equipment of a fair market value pf $18,000 and a building with a fair market value of $39,000. His basis in the equipment is $14,000, and his basis in the building is $26,000. How much gain must the SA general partnership recognize on the transfer of these assets from Sue and Andrew?

a. $0

b. $4000

c. $48,000

d. $52,000