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Power comes in to the lower L gear from the transmission. The rear fork can push the rear output gear forward (for rear 1:1 high-range) or backward to engage the smaller central gear for rear low-range. If it's centered as shown, the rear is in neutral. The upper L gear is an idler spinning the same speed as the input, so the front (upper) output gear performs the same functions as the rear (lower) one.
But the pills between the shift rails prevent the front & rear from being in different ranges.
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