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 $490,000 to the partnership. The land was encumbered by a $140,000 nonrecourse liability that had been placed on the property three years earlier. In addition Adams received a $50,000 check from the partnership. Block and Smith each transferred cash of $300,000 to the partnership.

What is the amount of gain, if any, that Adams must recognize as a consequence of the above transactions?

Taxes accounting