Liz and John formed the equal LJ Partnership on January $1$ of the current year. Liz contributed $$80,000$ of cash and land with a fair market value of $$90,000$ and an adjusted basis of $$75,000.$ John contributed equipment with a fair market value of $$170,000$ and an adjusted basis of $$20,000.$ John previously used the equipment in his sole proprietorship.

If an amount is zero, enter $"0".$

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a$.$ How much gain or loss will Liz, John, and LJ realize?

Liz realizes a

of $fill in the blank $834$c$3402100$dfa$7\_2$

on contribution of the land.

John realizes a

of $fill in the blank $834$c$3402100$dfa$7\_4$

on contribution of the equipment.

The partnership realizes a

equal to the

$.$

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b$.$ How much gain or loss will Liz, John, and LJ recognize?

Liz recognizes $fill in the blank $4$ccc$0$c$00$f$046$fdc$\_1$

$.$

John recognizes $fill in the blank $4$ccc$0$c$00$f$046$fdc$\_2$

$.$

The partnership recognizes $fill in the blank $4$ccc$0$c$00$f$046$fdc$\_3$

$.$

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c$.$ What bases will Liz and John take in their partnership interests?

Liz's basis in the partnership is $fill in the blank $26717$e$028$f$87$fe$3\_1$

$,$ and John's basis is $fill in the blank $26717$e$028$f$87$fe$3\_2$

in his partnership interest.

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d$.$ What bases will the partnership take in the assets it receives?

The partnership will take a $fill in the blank $851905$f$85$ff$5$f$96\_1$

basis in all the assets it receives.

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e$.$ How will LJ depreciate any assets it receives from the partners? Select "Yes" or $"$No$",$ whichever is applicable.

The partnership will "step into John's shoes" in determining its depreciation expense.

The partnership may choose its own useful life and depreciation method.