Pea and Bean are forming the PB Partnership. Pea contributes $600,000 cash and Bean contributes nondepreciable property with an adjusted basis of $400,000 and a fair market value of $600,000. The partnership agreement states that Pea and Bean share in all partnership profits and losses equally.

1. How much gain or loss will Pea, Bean, and the PB partnership recognize?

2. What is Bean's adjusted basis for his partnership interest immediately after the partnership is formed?

3. What is PB Partnership's adjusted basis for the property contributed by Bean?

4. If PB partnership sells the property contributed by Bean for $800,000, how is the tax gain allocated between the partners?