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Lance contributed investment property worth $ 5 3 2 , 5 0 0 , purchased Five years ago for $ 4 3 0 , 0

Lance contributed investment property worth $532,500, purchased Five years ago for $430,000 cash, to Cloud Peak LLC in exchange for an 95 percent profits and capital interest in the LLC. Cloud Peak owes $535,000 to its suppliers but has no other debts. a. What is Lances tax basis in his LLC interest? b. What is Cloud Peaks basis in the contributed property?

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