Haw-Keya-Moto, a general partnership, was formed by Haw, Keya, and Moto respectively, $220,000 cash for Haw and Keya. Moto contributed an acre of land with a tax basis of $140,000 and an appraisal value of $360,000. The land had a $140,000 mortgage (non-recourse) for which no one was personally liable. Profits and losses are to be split equally. At the end of the first year, Haw-Keya-Moto paid a $14,000 payment principal on the mortgage. In the first year of operations, the partnership reported the following events: