Problem 10-5 Partnership Formation (LO 10.2) Larry and Jessica form the L&J Partnership. Larry contributes property with an adjusted basis of $70,000, a fair market value of $200,000, and subject to a lety of $80,000 in exchange for a 40 percent interest in the partnership. Jessica receives a 60 percent interest in the partnership in exchange for services performed for the partnership, valued at $10,000, and cash of $170,000. If an amount is zero, enter "O". a. What amount of gain or loss must Larry recognize as a result of his transfer of the property to the partnership b. What is Larry's basis in his partnership interest immediately after the formation of the partnership including allocation of partnership labies? c. What is the partnership's basis in the property contributed by Larry? con d. What is Jessica's basis (after considering Larry's liability assumed by the partnership) in her partnership interest immediately after including allocation of partnership liabilities? e. How much income does Jessica recognize on the exchange? 10,000