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Laine and Emma form the equal EL Partnership. Emma contributes cash of $100,000. Laine contributes property with an adjusted basis of $40,000 and a fair market value of $100,000.
a. How much gain, if any, must Emma identify on the transfer? Must Laine recognize any gain?
b. Evaluate what is Emma's basis in her partnership interest?
c. Find what is Laine's basis in her partnership interest?
d. What basis does the partnership take in property transferred by Laine?
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