IX. (22 points) Brad, Otis, and Andrea form Teal Partnership with the following investment: Consideration Transferred Basis to Fair Market Partnership Transferor Value Interest 25% From Brad- Land-capital asset (held 9 months) $ 10,000 $200,000 Business liability 100,000 100,000 From Otis- Equipment(held 2 years) 210,000 110,000 Business liability 10,000 10,000 From Andrea- Inventory (held 16 months) 240,000 300,000 Business liability 100,000 100,000 25% 50% All liabilities transferred by partners are assumed by Teal Partnership. Profits and losses are shared in accordance with their ownership interest. A. What, if any, is Brad's recognized gain or loss? B. What is Brad's basis in the Teal Partnership? c. What is Brad's holding period in his partnership interest? Page 11 IX. (22 points) Brad, Otis, and Andrea form Teal Partnership with the following investment: Consideration Transferred Basis to Fair Market Partnership Transferor Value Interest 25% From Brad- Land-capital asset (held 9 months) $ 10,000 $200,000 Business liability 100,000 100,000 From Otis- Equipment(held 2 years) 210,000 110,000 Business liability 10,000 10,000 From Andrea- Inventory (held 16 months) 240,000 300,000 Business liability 100,000 100,000 25% 50% All liabilities transferred by partners are assumed by Teal Partnership. Profits and losses are shared in accordance with their ownership interest. A. What, if any, is Brad's recognized gain or loss? B. What is Brad's basis in the Teal Partnership? c. What is Brad's holding period in his partnership interest? Page 11