Adams, Block and Smith are to be equal (1/3) general partners in the ABS partnership. Adams transferred land with an adjusted basis of $280,000 and a FMV of $480,000 to the partnership. The land was encumbered by a $180,000 nonrecourse liability that had been placed on the property three years earlier. Block transferred cash of $320,000 to the partnership and Smith transferred cash of $280,000 to the partnership.

a) What is the amount of gain, if any, that Adams must recognize as a consequence of the above transactions? b) What is each partner's outside basis in the ABS partnership?