1.) Mr. McRich is a limited partner with a 60% loss interest and a 30% profit interest in the XYZ Partnership. Mr. McRich contributed $10,000 cash for his partnership interest. At the time of his contribution, the partnership had recourse liabilities of $100,000 and nonrecourse liabilities of $70,000. There is no minimum gain related to the nonrecourse debt. For the recourse debt, economic risk of loss is shared by the partners based on each partners loss interest. Mr. McRichs basis in his partnership interest is ...????

2.) Mr. D and Mr. E formed a calendar-year partnership. Mr. D contributed land that had a basis to him of $5,000 and a fair market value of $10,000. The land was contributed subject to a mortgage of $3,000. Mr. E is to manage the partnerships business for which he will receive a one-half interest in the profits, losses, and capital of the partnership. Neither of the partners nor the partnership is required to recognize gain or loss on the formation of the partnership. True or False and explain your answer with code section!!