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Cosmo contributed land with a fair market value of $345,000 and a tax basis of $106,500...

Cosmo contributed land with a fair market value of $345,000 and a tax basis of $106,500 to the Y Mountain partnership in exchange for a 35 percent profits and capital interest in the partnership. The land is secured by $126,000 of nonrecourse debt. Other than this nonrecourse debt, Y Mountain partnership does not have any debt. (Leave no answer blank. Enter zero if applicable.)

a. How much gain will Cosmo recognize from the contribution?

b. What is Cosmo’s tax basis in his partnership interest?

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