Exercise 10-25 (Algorithmic) (LO. 10) Jokan contributes a nondepreciable asset to the Mahali LLC in exchange for a one-fourth (25%) interest in the capital, profits, and losses of the LLC. The asset has an adjusted tax basis to Jokan and the LLC of S 185,000 and a fair market value and 704 (b) "book" basis on the contribution date of $333,000. The asset is encumbered by a nonrecourse note of $259,000 that has not been guaranteed by any of the LLC members. Under 704(c) principles, the Regulations provide that the first of the nonrecourse debt is allocated to Jokan. Jokan's basis in his LLC interest is