3. Same as Problem 2, except A and B form an LLC rather than a general partner- ship and there is no deficit restoration obligation.

nership interest. Assume there is a state law assumption of the mortgage by the tributed property is $20,000. B contributes $10,000 in exchange for a 20% part- $60,000, in exchange for an 80% interest in the partnership. The basis of the con- property with a fair market value of $100,000 subject to a recourse mortgage of 2. A and B form general partnership AB that is not an LLP. A contributes real partnership. a. What are A's and B's bases for their partnership interests immediately following the formation of the partnership? b. Does A recognize any gain upon the contribution of the property?