Sam and Drew are equal members of the SD, LLC,. Sam contributed land that he inherited from his uncle in 2009. Sams uncle purchased the land in 1984 for $30,000. The land was worth $100,000 when Sams uncle died. The FMV of the land was $200,000 at the date it was contributed to SD.

Drew performs services for the LLC. He would normally bill a third party $50,000 for these efforts. Drew also contributes $150,000 of cash in exchange for his 50% interest in SD. The value of his interest is $200,000

1. How much gain or income does Sam recognize on his contribution of the land to SD? What is the character of any gain or income recognized?
2. What basis does Sam take in his LLC interest?
3. Answer (1) and (2) regarding Drew.