in viruses. Unless you need to edit it's safer to stay in Protected View Enable Editing Jack. Alex, and Bernie form JAB, an equal, cash method, general partnership Alex contributes equipment held for 15 months with a value of $250,000 and an adjusted basis of $175.000. Alex paid $200,000 for the property and has claimed $25,000 of depreciation. Alex also contributes $150,000 cash. Bernie contributes nondepreciable property purchased 3 years ago for $475,000 for investment purposes. The land has a value of $400,000. The partnership holds the property as inventory Jack contributes nondepreciable property that has a value of $400,000 that he purchased 8 months ago for $350,000. Jack is a dealer in the property purchased (it is inventory to him), but the property is investment property to the partnership. 20 Points Assume the property contributed by Jack is sold four years after formation for $450.000. What is the amount of book and tax gain or loss on the sale. (2) how is the book and tax gain allocated among the partners (including the character of any tax gain); and (3) what is the impact on each partner's capital account and tax basis (what is cach partner's capital account and basis after the transaction)? (4) Prepare a balance sheet (book and tax) reflecting the initial formation. (5) Prepare a balance sheet (book and tax) reflecting the sales transaction