Cosmo contributed land with a fair market value of $400,000 and a tax basis of $90,000 to the Y Mountain partnership in exchange for a 25 percent profits and capital interest in the partnership. The land is secured by $120,000 of nonrecourse debt. Other than this nonrecourse debt, Y Mountain partnership does not have any debt.

1. How much gain will Cosmo recognize from the contribution?
2. What is Cosmos tax basis in his partnership interest?

Description	Cosmo
(1) Basis in contributed Land
(2) Nonrecourse mortgage in excess of basis in contributed land
(3) Remaining nonrecourse mortgage
Basis immediately prior to debt relief
(4) Relief from mortgage debt
Cosmos initial tax basis in Y Mountain