Cooke and Thatcher form the C&T Partnership. Cooke contributes equipment with a fair market value of $70,000 and a basis of $35,000, in exchange for an 70 percent interest in the partnership capital and profits. Thatcher performs services worth $30,000 for the partnership in exchange for a 30 percent interest in capital and profits.

a.What is the amount of Cooke's recognized gain or loss (if any) as a result of the contribution to the partnership in exchange for the partnership interest?

b.What is Cooke's basis in his partnership interest immediately after the contribution?

c.What is the amount of Thatcher's recognized income or loss (if any) on the contribution to the partnership?

d.What is Thatcher's basis in her partnership interest immediately after the contribution?e.What is C&T Partnership's basis in the equipment received from Cooke?