Liz 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 previously used the equipment in his sole proprietorship. Are there any differences between inside and outside basis? Explain.