Scrooge and Donald are forming the SD Partnership. Scrooge contributes $600,000 cash and Donald contributes land with an adjusted basis of $400,000 and a fair market value of $750,000. The land is subject to a $150,000 liability, which is also transferred into the partnership and is shared equally by the partners. Scrooge and Donald share in all partnership profits equally except for any precontribution gain, which must be allocated according to the tax rules for built-in gain allocations. a. What is Donald's adjusted tax basis for his partnership interest immediately after the partnership is formed? b. What is the partnership's adjusted basis for the property contributed by Donald? c. If the partnership sells the property contributed by Donald for $800,000, how is the tax gain is recognized by Scrooge? d. If the partnership sells the property contributed by Donald for $800,000, how is the tax gain is recognized by Donald? Answer (a)