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Cosmo contributed land with a fair market value of $490,000 and a tax basis of $131,250 to the Y Mountain partnership in exchange for a

Cosmo contributed land with a fair market value of $490,000 and a tax basis of $131,250 to the Y Mountain partnership in exchange for a 30 percent profits and capital interest in the partnership. The land is secured by $177,000 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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