AB corporation and YZ corporation form ABYZ partnership to construct a shopping mall. AB contributes $500,000 cash and YZ contributes land FMV $500,000 with a basis of $100,000 in exchange for 50%/50% interest in ABYZ partnership. Immediately after formation, ABYZ partnership borrowed $300,000 from a local bank to make improvements. The debt is recourse and the partnership incurred a loss of $180,000.

a. Compute each partner's basis in the partnership assuming that both are general partners.

b. Compute each partner's basis in the partnership assuming AB is a general partner and YZ is a limited partner.