1 Gerald received a one-third capital and profit (loss) interest in XYZ Limited Partnership (LP). In exchange for this interest, Gerald contributed a building with an FMV of $30,000. His adjusted basis in the building was $15,000. In addition, the building was encumbered with a $9,000 nonrecourse mortgage that XYZ LP assumed at the time the property was contributed. a) What is Gerald's outside basis immediately after his contribution? b) How would your answer change if the mortgage is $20,000 instead of $9,000? Question 2 In X1, Adam and Jason formed ABC, LLC, a car dealership in Kansas City. In X2, Adam and Jason realized they needed an advertising expert to assist in their business. Thus, the two members offered Cory, a marketing expert, a one-third capital interest in their partnership for contributing his expert services. Cory agreed to this arrangement and received his capital interest in X2. The value of the LLC's capital equals $180,000 when Cory receives his one-third capital interest. a) What is Cory's outside basis in the partnership? b) Does Cory need to recognize any gains or losses? If so, what is the amount? And what type of gain is that (ordinary gain, capital gain, etc,)?| c) Are there any tax consequences to Adam and Jason? If so, what is it and what is the amount recognized by each Adam and Jason