1. The WN Partnership was formed by W and N. W contributed $5,000 cash for a 50% partnership interest. N contributed property with a tax basis of $2,000 and a FMV of $5,000 for a 50% interest. The partnership uses the traditional method for allocating gains and losses. All income, gain, losses and deductions are allocated according to the partner's interest in the partnership. a. If WN sells the property contributed by N for $6,000, what is the tax gain? What is the book gain? b. How will the tax gain be allocated to each of the partners? How will the book gain be allocated to each of the partners? c. Compute the outside basis of each partner after the transaction. d. Compute the capital account of each partner after the transaction. e. How will the tax and book gain or loss be allocated to each of the partners if the property is sold by the partnership for $4,000?