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  3. on february 1,2009, kay and larry form the kl gene

On February 1,2009, Kay and Larry form the KL General Partnership as equal partners by...

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Accounting

On February 1,2009, Kay and Larry form the KL General Partnership as equal partners by contributing the following assets:
PartnerAssetBasisFMV??KayEquipment$40000$50000LarryLand$20000$110000
Kay purchased the equipment on December 15,1996, for $$75,000. Larry purchased the land on March 5,1983, and itis subject toa $60,000 liability, which the partnership assumes.
A. What is each partners realized and recognized gain or loss?
B. What is each partners basis in his or her partnership interest? When does his or her holding period begin?
C. Prepare the partnership's tax balance sheet.
D. Prepare the partnershipsFMV balance sheet.
E.If each partner sells his partnership interest tomorrow, how much gain or loss will his or her recognize? How do these gains relate to those in part a?
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