Peter transfers a piece of land to Partnership PAT for a partnership interest. The land had an adjusted basis in Peters hands of $25 and a fair market value of $100. It was purchased 3 years ago. Peter receives a capital account in PAT of $100 and a 5% profits interest. PAT has no liabilities at the time of the transfer.

1) Does Peter recognize gain or loss on the receipt of the partnership interest? Yes or no

2) If yes, enter how much, if no enter $0

3) What is Peters adjusted outside basis in the partnership interest he receives?

4) What is Peters holding period in the partnership interest?

5) Does PAT recognize gain or loss on the receipt of the land, if yes enter the amount, if no enter $0.

6) What is PATs adjusted basis in the land?

7) What is PATs holding period in the land?