John and Yi formed the X partnership on June 16, 20X6. They agreed to split profits and losses equally. John contributed $20,000 cash and Yi contributed a machine with a basis of $5,000 (fmy $50,000) subject to a mortgage of $30,000 on June 17, 20X6. Yi's holding period for the machine began on May 2, 20X4. 11. Yi's recognized gain is: a. $0 b. $10,000 c. $45,000 None of the above 12. Yi's basis for his partnership interest is: $5,000 $20,000 $0 None of the above