1. On 1/2/21, Casey bought a 40% ownership interest in a partnership in exchange for $100,000 cash plus land that had an FMV of $800,000, which Casey had $200,000 of basis in. This partnership is 100% equity funded and has never had any debt. At the end of the tax year (12/31/21), the following is reported for the partnership: $500,000 ordinary taxable business income, $40,000 tax-exempt income, and $20,000 non-deductible expenses. What is Casey’s basis in the partnership on 12/31/21, assuming Casey took a $50,000 cash distribution just prior to year-end?

   1. $0

   2. $258,000

   3. $458,000

   4. $958,000