Rachael and Ray form an equal partnership R&R on January 1, 20X1. Rachael contributes $100,000 in exchange for her one-half interest; Ray contributes land worth $100,000. Rays adjusted basis in the land is $30,000. Which of the following statements is accurate with respect to this exchange?
a. Neither Rachael, Ray, nor R&R recognize any gain or loss on the transfer.
b. Ray recognizes $70,000 gain on the transfer.
c. R&R recognizes $70,000 gain on the transfer.
d. b. and c.