Danielle Jefferson and Waylon Evons form an equal partnership. In exchange for her interest, Danielle contributes $30,000 of cash and property worth $70,000. Danielle’s adjusted basis in the property is $50,000. In exchange for his 50% interest Waylon performs services for the partnership and contributes $40,000 cash. What amount of gain or loss does each partner recognize on the exchange of his or her contributions for a 50% share in the partnership? What is each partner’s basis in his or her respective partnership interest? What is the partnership’s interest in the property Danielle contributes to the partnership?