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  3. on january 1 of the current year, rachel and bill

On January 1 of the current year, Rachel and Bill form an equal partnership. Rachel...

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Accounting

On January 1 of the current year, Rachel and Bill form an equal partnership. Rachel makes a cash contribution of $40,000 and a property contribution (adjusted basis of $55,000 and FMV of $40,000) in exchange for her 50% interest in the partnership. Bill contributes property (adjusted basis of $60,000 and FMV of $80,000) in exchange for his 50% partnership interest. As a result of this partnership formation:  


Rachel's basis in her one-half interest in the partnership is $

The partnership's basis in the property contributed by Bill is $

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