Question: Alex, Brian, and Catherine form ABC Partnership to develop real estate. Their contributions are as follows: Alex: Contributes land with a fair market value of

Alex, Brian, and Catherine form ABC Partnership to develop real estate. Their contributions are as follows:
Alex: Contributes land with a fair market value of $200,000 and an adjusted basis of $100,000, subject to a $50,000 mortgage.
Brian: Contributes $100,000 in cash.
Catherine: Contributes services valued at $100,000 in exchange for a 25% interest in partnership capital.
How does each partner determine their initial basis, and what are the tax implications of Catherines contribution?

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