Allana and Barbara form the A&B partnership. Under the partnership agreement, all items of income, loss, and deduction are allocated 50% to each. Allana contributes cash of $100,000 and Barbara contributes securities with a value of $100,000 and a tax basis of $80,000. Two years after formation, the securities are sold for $120,000. Select the true statements from the list below.

PICK ALL THAT APPLY!!

the book gain is $20,000 which is allocated $10,000 to each partner.

the tax gain is $40,000 with $20,000 allocated to each partner.

the tax gain is $40,000 which is allocated $30,000 to Barbara and $10,000 to Allana.

the built-in gain of $20,000 must be recognized by Barbara at the time the securities are contributed to the partnership