PART II - The following questions ask you to distinguish the tax treatment of the three types of entities we have studied. (5 points for each entity) 1. Emerson contributes land with a basis of $85,000 and a fair market value of $100,000 to a business entity in which he is a 75% owner. The land is subject to a mortgage of $10,000, which the entity assumes. The entity has no other debt. Discuss the tax consequences to Emerson, including any gain/loss he will recognize and his basis in his ownership interest if the entity is: a. C corporation b. S corporation c. Partnership Partnership