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Kathy contributes the following property to the K&L S corporation for 50% of the shares: Land-FMV $70K; Tax Basis $40K; Cash $50K. The S corporation

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Kathy contributes the following property to the K&L S corporation for 50% of the shares: Land-FMV $70K; Tax Basis $40K; Cash $50K. The S corporation earns $300K in Year 1, obtains a bank loan of $70K, and distributes $20,000 to each shareholder. What is Kathy's basis at the end of Year 1

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