Betty transferred land with a FMV of $200,000, with a tax basis of $40,000, to ABC Partnership for a 25% interest. The land is subject to a $100,000 recourse liability. 1._____ What is Betty's basis in her partnership interest immediately after the transfer of the land and the liability? 1. $-0- 2. $40,000 3. $65,000 4. $200,000 2. 1. $-0- 2. $35,000 3. $40,000 4. $60,000 What is Betty's recognized gain on the transfer?