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Cosmo contributed land with a fair market value of $345,000 and a tax basis of $106,500 to the Y Mountain partnership in exchange for a

Cosmo contributed land with a fair market value of $345,000 and a tax basis of $106,500 to the Y Mountain partnership in exchange for a 35 percent profits and capital interest in the partnership. The land is secured by $126,000 of nonrecourse debt. Other than this nonrecourse debt, Y Mountain partnership does not have any debt

a. How much gain will Cosmo recognize from the contribution?

b. What is Cosmos tax basis in his partnership interest?

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