Compute each partner's adjusted basis in the partnership at the end of the first year of operations.

Haw-Keya-Moto, a general partnership, was formed by Haw, Keya, and Moto respectively, $220,000 cash for Haw and Keya. Moto contributed an acre of land with a tax basis of $140,000 and an appraisal value of $360,000. The land had a $140,000 mortgage (non-recourse) for which no one was personally liable. Profits and losses are to be split equally. At the end of the first year, Haw-Keya-Moto paid a $14,000 payment principal on the mortgage. In the first year of operations, the partnership reported the following events:

Sales revenues	940,000
Cost of goods sold	820,000
Operating expenses	140,000
Long term capital gains	4,800
Section 1231 gains	1,800
Charitable contribution	600
Municipal bond interests	600
Salary paid as guaranteed payment to Keya (not in expenses)	6000