$On$ February $1,2009,$ Kay and Larry form the $KL$ General Partnership $as$ equal partners $by$ contributing the following assets:

$\begin{array}{cc}\text{P}\text{a}\text{r}\text{t}\text{n}\text{e}\text{r}& \text{A}\text{s}\text{s}\text{e}\text{t}\\ \text{B}\text{a}\text{s}\text{i}\text{s}& FMV\\ ?& ?\\ \text{K}\text{a}\text{y}& \text{E}\text{q}\text{u}\text{i}\text{p}\text{m}\text{e}\text{n}\text{t}\\ \text{\$}40& 000\\ \text{\$}50& 000\\ \text{L}\text{a}\text{r}\text{r}\text{y}& \text{L}\text{a}\text{n}\text{d}\\ \text{\$}20& 000\\ \text{\$}110& 000\end{array}$

Kay purchased the equipment $on$ December $15,1996,$ for $$$75,000.$ Larry purchased the land $on$ March $5,1983,$ and $itis$ subject $toa$ $$60,000$ liability, which the partnership assumes.

$A.$ What $is$ each partner$s$ realized and recognized gain $or$ loss?

$B.$ What $is$ each partner$s$ basis $in$ his $or$ her partnership interest? When does his $or$ her holding period begin?

$C.$ Prepare the partnership's tax balance sheet.

$D.$ Prepare the partnership$sFMV$ balance sheet.

$E.If$ each partner sells his partnership interest tomorrow, how much gain $or$ loss will his $or$ her recognize? How $do$ these gains relate $to$ those $in$ part $a?$