George and James are forming the GJ Partnership. George contributes $$600,000$ cash and James contributes non$-$depreciable property with an adjusted basis of $$400,000$ and a fair market value of $$750,000.$ The property is subject to a $$150,000$ liability, which is also transferred into the partnership and is shared equally by the partners for basis purposes.

George and James share in all partnership profits equally except for any pre$-$contribution gain, which must be allocated according to the statutory rules for built$-$in gain allocations.

Show your calculations where applicable in order to receive any possible partial credit. Be SURE to label each answer very clearly.

a$.$ How much gain is recognized by each of the following upon formation of the partnership:

George?

$$James$?$

GJ Partnership?$$

b$.$ What is James's adjusted tax $($outside$)$ basis for his partnership interest immediately after the partnership is formed?

c$.$ What is the partnership's adjusted $($inside$)$ basis for the property contributed by James?

d$.$ If the partnership sells the property contributed by James for $$850,000$:

$1.$ Show the calculation of the total gain or loss on the sale.

$2.$ Show the calculation of the built$-$in$-$gain.

$3.$ Show the calculation of the amount of total gain allocated to each partner. Be sure to label how much gain to EACH partner.