29. [LO 113] George and Georgenne formed the GG Partnership as equal partners. Each partner contributed cash and property with a value of $100,000 for partnership operations. As a result of these contributions, George had a basis of $80,000 and Georgenne a basis of $60,000 in their partnership interests. At the end of their first year of operations, they had the following results: Gross sales $150,000 95,000 15,000 15,000 Cost of goods sold Rent expense Salaries to employees Utilities Charitable contribution 4,000 1,000 Section 1231 gain 2,000