Cosmo contributed land with a fair market value of $400,000 and a tax basis of $90,000 to

Question:

Cosmo contributed land with a fair market value of $400,000 and a tax basis of $90,000 to the Y Mountain in exchange for a 25 percent profits and capital interest in the The land is secured by $120,000 of nonrecourse debt. Other than this nonrecourse debt, Y Mountain does not have any debt.
a. How much gain will Cosmo recognize from the contribution?
b. What is Cosmo's tax basis in his interest?
Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...