Luis, Gabi, and Katherine form a partnership. Luis and Gabi give equipment and a building, respectively. Katherine agrees to perform all of the accounting and office work in exchange for a 10% interest.

	FMV	Basis	Partnership %
Luiss equipment	$ 66,000	$ 11,000	45%
Gabis building	$ 66,000	$ 44,000	45%
Katherines services	$ 0	$ 0	10%

Required:

1. What amount of gain, if any, do each of the partners recognize? Note: Leave no cells blank - be certain to enter "0" wherever required.
2. What is the basis for each partner in his or her partnership interest?
3. What is the basis to the partnership of each asset?

\begin{tabular}{|l|l|} \hline \multicolumn{1}{|c|}{ Partner } & Gain \\ \hline Luis & \\ \hline Gabi & \\ \hline Katherine & \\ \hline \end{tabular} \begin{tabular}{|l|l|} \hline \multicolumn{1}{|c|}{ Partner } & Basis \\ \hline Luis & \\ \hline Gabi & \\ \hline Katherine & \\ \hline \end{tabular} \begin{tabular}{|l|l|} \hline \multicolumn{1}{|c|}{ Asset } & Basis \\ \hline Equipment & \\ \hline Building & \\ \hline \end{tabular}