In the extra credit assignment for partnership formations, the basic fact pattern is as follows: Mary and Todd form the MT Partnership, with a transfer of the following properties: Mary $500,000 cash $500,000 FMV property $300,000 tax basis Todd Both Mary and Todd receive a 50% interest in the partnership. They have an agreement that allocates all profits and losses 50% to each member. They also have language in their partnership agreement that satisfies the alternate test for economic effect. REQUIRED: 1. Show the book (704b) and tax basis capital account entries for both Mary and Todd at formation of the partnership. 2. Assume that Todd's property is later sold for $700,000. No depreciation deductions were claimed. Show the allocation of the book and tax gain from this sale, and explain which one will be reflected on the tax return of the partnership.