In 2015, Ryce contributes non-depreciable property with an adjusted basis of $60,000 and a fair market value of $95,000 to the Montgomery Partnership in exchange for a one-half interest in profits and capital. In 2016, when the propertys fair market value is $100,000, the partnership distributes the property to Jarvis, the other one-half partner.

Which partner must recognize the built-in gain and what is the amount recognized? What is the effect on that partners basis in the partnership interest?