9liz and john formed the equal lj partnership on january 1 of the current year. liz contributed $80,000 of cash and land with a fair market value of $90,000 and an adjusted basis of $75,000. john contributed equipment with a fair market value of $170,000 and an adjusted basis of $20,000. john had used the equipment in his sole proprietorship. a. how much gain or loss will liz, john, and the partnership realize? b. how much gain or loss will liz, john, and the partnership recognize? c. what bases will liz and john take in their partnership interests? d. what bases will lj take in the assets it receives? e. are there any differences between inside basis and outside basis? explain. f. how will the partnership depreciate any assets it receives from the partners? g. do additional considerations arise because of the difference between the basis and fair market values of the property john contributed? explain.

Miko willingly admits that she is not an accountant by training. she is concerned that her balance sheet might not be correct. she has provided you with the following additional information. 1. the boat actually belongs to miko, not to skysong, inc.. however, because she thinks she might take customers out on the boat occasionally, she decided to list it as an asset of the company. to be consistent, she also listed as a liability of the corporation her personal loan that she took out at the bank to buy the boat. 2. the inventory was originally purchased for $27,500, but due to a surge in demand miko now thinks she could sell it for $39,600. she thought it would be best to record it at $39,600. 3. included in the accounts receivable balance is $11,000 that miko loaned to her brother 5 years ago. miko included this in the receivables of skysong, inc. so she wouldn’t forget that her brother owes her money. (b) provide a corrected balance sheet for skysong, inc.. (hint: to get the balance sheet to balance, adjust stockholders’ equity.) (list assets in order of liquidity.)