Q5

Partnership KBCD owns a building with a tax basis of $1,300,000 and a book value of $2,000,000. The building (which was contributed to the partnership by a partner) is encumbered by a nonrecourse mortgage of $2,225,000.
a. What is the Code Sec. 704(b) minimum gain (if any) with respect to this property?
b. What is the Code Sec. 704(c) minimum gain (if any) with respect to this property?