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three equal partners formed partnership XYZ by each contributing $100,000 to the partnership. In the first year of operations, an $800,000 rental property was purchased
three equal partners formed partnership XYZ by each contributing $100,000 to the partnership. In the first year of operations, an $800,000 rental property was purchased in exchange for $200,000 in cash and a $600,000 recourse obligation. The partnership earned net income of $30,000 in its first year. What amount was each partner's basis in the partnership at the end of the first year?
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