Preti transfers cash of $25,000 and equipment with a fair market value of $75,000 (basis to her as sole proprietor of $10,000) in exchange for a 40% profit and loss interest in the Gold partnership. Her partnership interest is worth $100,000.

a. What are her realized and recognized gains?

b. What is her basis in the partnership?

c. What basis does the partnership take in the equipment?