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Q3-6 Lance contributed investment property worth $705,000, purchased Four years ago for $430,000 cash, to Cloud Peak LLC in exchange for an 85 percent profits

Q3-6

Lance contributed investment property worth $705,000, purchased Four years ago for $430,000 cash, to Cloud Peak LLC in exchange for an 85 percent profits and capital interest in the LLC. Cloud Peak owes $525,000 to its suppliers but has no other debts.

What is Lances tax basis in his LLC interest?

What is Cloud Peaks basis in the contributed property?

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