$5$a$)$ In $2023,$ Oscar and Andy pooled their resources to form Garfinco Partnership.

They will both work actively in the business and they have agreed to share profits and losses $50-50.$ To form this partnership, Oscar contributed manufacturing equipment with a FMV of $$1,000,000$ and a basis of $$100,000.$ Andy contributed $$400,000$ of cash and land with a fair market value of $$800,000$ and a basis of $$500,000.$ The equipment contributed by Oscar was not encumbered by debt. The land contributed by Andy had a $$200,000$ mortgage $($qualified nonrecourse debt$)$ which was assumed by Garfinco Partnership.

a$.$ Determine the basis that Oscar and Andy each have in their partnership interest. $($what are their outside bases?$)$

b$.$ During the year, the Garfinco Partnership had non$-$separately stated loss $($ordinary operating loss$)$ of $$(80,000),$ a long$-$term capital gain of $$20,000.$ They refinanced the $$200,000$ mortgage and now have a total of $$250,000$ of qualified non$-$recourse debt.

b$)(1)$

What items of income will Oscar $(50\%$ partner$)$ report on his $1040$ return?

b$)(2)$ What is Oscar's outside basis in his parthership interest at the end of rhe year

c$)$ In $2024,$ the Garfinco Partnership sold the land $($originally contributed by Andy$)$

for $$900,000.$ Determine the amount of gain to be allocated to oscar and andy