Carol and Connie formed the equal C&C Partnership on January 1 of the current year. Carol contributed $30,000 cash and land with a FMV of$60,000 and an AB of $40,000. Connie contributed equipment with a FMV of $90,000 and an AB of $30,000. Connie had previously used the equipment in her sole proprietorship.

A. How much gain or loss will Carol, Connie, and the partnership recognize?

B. What bases will Carol and Connie take in their partnership interests?

C. What bases will C&C take in the assets it receives?