RAND Q FORMA NEW PARTNERSHIP TO INVEST IN REAL ESTATE.

R CONTRIBUTES PROPERTYWITH A TAX BASIS OF$ 750,000.00 AND FMV OF$1,200.00 IN EXCHANGE FOR A 50% INTEREST IN PARTNERSHIP CAPITAL AND PROFITS. THE PROPERTY IS ENCUMBERED BY A$ 700.00 MORTGAGE FOR WHICH THE PARTNERSHIP ASSUMES LIABILITY FOR. Q CONTRIBUTES

PROPERTY WITH A TAX BASIS OF$ 300.00 AND FMV OF$ 600.00 IN EXCHANGE FOR THE RE!VIAINING 50% INTERESTIN CAPITAL AND PROFITS. THE PROPERTY CONTRIBUTED BY Q IS ENCUMBERED BY A$ 100.00 LIABILITY.

DETERMINE

PARTNER R INITIAL TAX BASIS IN PARTNERSHIP INTEREST?

DETERMINE

PARTNER Q INITIAL TAX BASIS IN PARTNERSHIP INTEREST?