Justin and Margaret form J&M Partnership. Justin contributes property with an adjusted basis of $70,000, a fair market value of $200,000, and subject to a liability of $80,000 in exchange for a 40% interest in the partnership. Margaret receives a 60% interest in the partnership, in exchange for services performed for the partnership, valued at $10,000 and cash of $170,000

a. What amount of gain or loss must Justin recognize as a result of his transfer of property to the partnership?______________________________________________________________________________________________________________________________________

b. What is Justins basis in his partnership interest immediately after the formation of the partnership including allocation of partnership liabilities?_______________________________________________________________________________________________________________________________________

c. What is the partnerships basis in the property contributed by Justin?_________________________________________________________________________________________________________________________________________

d. What is Margarets basis in her partnership interest immediately after the formation of the partnership including allocation of partnership liabilities?______________________________________________________________________________________________________________________________________

e. How much income will Margaret recognize on the exchange? ____________________