Assume that the facts are the same as noted in Facts A except for the following: Joe intends to contribute Property A with fair market value (FMV) of $800 and basis of $300. At that time of contribution, Property A was encumbered with $300 debt financed from Bank A. Sunny intends to contribute cash of $800. For purposes of this question, Joe and Sunny are equal partners with no special tax allocations.

Question 1: Provide Joes basis in MIP upon contribution (i.e., Year 0) of Property A.

Question 2: Provide Sunny's basis in MIP upon contribution (i.e., Year 0) of cash.

Question 3: Provide MIPs basis in Property A and cash immediately after contribution.

Question 4: At the end of Year 1, MIP had an operating income of $1,000. MIP made cash distribution of $1,000 and distributed Property A only to Joe. For purposes of this question, assume no depreciation was taken for Property A for Year 1 and FMV remained the same from the date of contribution. Provide Joes and Sunnys outside basis at the end of Year 1 and Joes basis in Property A upon distribution to him.