Question: Assume the same facts as in Problem 31, except that Mike sells his land to a third party for $100,000 and then contributes that cash

Assume the same facts as in Problem 31, except that Mike sells his land to a third party for $100,000 and then contributes that cash to the partnership in addition to the original $40,000 contribution. The partnership locates equivalent land that it purchases for $110,000. How do these changes affect the tax and economic result for Mike and the partnership?

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