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During the formation of Matt partnership, Tom contributed property with an adjusted basis of $140,000 in exchange for a 25% interest in Matt. The fair

During the formation of Matt partnership, Tom contributed property with an adjusted basis of $140,000 in exchange for a 25% interest in Matt. The fair market value of the contributed property was $175,000 and the property was encumbered by nonrecourse debt with a balance of $130,000. What amount of gain should Tom recognize from contributing property to the Weaver partnership

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