1. In the current year, Jake contributed machinery worth $15,000 with an adjusted basis of $2,000 to Tinfoil Partnership in exchange for a 15% interest. On the contribution date, the machinery was encumbered by a $4,000 debt amount. Prior to the contribution, Tinfoil had $6,500 in long-term payables due to a customer complaint case. What is Jake's basis in his Tinfoil interest?

2. Jack contributed accounting services to Pillow Partnership in exchange for a 25% capital interest in the entity. At the time of contribution, Pillow Partnership had net assets with a fair market value of $150,000 and a basis of $83,000. What is the amount and character of the gain or loss that Jack will recognize from this transaction?

3. Coco acquired a 30% interest in Cupcake Partnership in the beginning of the current year in exchange for $50,000 cash and a building worth $220,000 (basis of $120,000). In the same year, Cupcake Partnership incurred a $10,000 non-recourse loan. Assuming the partnership realized an ordinary loss of $15,000, what is Coco's outside basis at the end of the year?