Question: Continue with the facts presented in Problem 6. At the end of the first year, SD distributes $100,000 cash to Sam. No distribution is made

Continue with the facts presented in Problem 6. At the end of the first year, SD distributes $100,000 cash to Sam. No is made to Drew.
a. How does Sam treat the payment?
b. How much income or gain would Sam recognize as a result of the payment?
c. Under general tax rules, what basis would SD take in the land Sam contributed?

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