LO.7 Four GRRLS Partnership is owned by four unrelated friends. Lacy holds a 40% interest; each of the others owns 20%. Lacy sells investment property to the partnership for its fair market value of $200,000. Her tax basis in the property was $250,000.

a. How much loss, if any, may Lacy recognize?

b. If Four GRRLs later sells the property for $260,000, how much gain must it recognize? C. How would your answers in parts

(a) and

(b) change if Lacy owned a 60% interest in the partnership?

d. If Lacy's basis in the investment property was $120,000 (instead of $250,000) and she was a 60% partner, how much, if any, gain would she recognize on the sale of the property to Four GRRLs? How is it characterized?