Assume the same facts as in the previous question, except that the partnership has $250,000 of liabilities outstanding. Karen's share of these liabilities is $50,000 (20%). With the liabilities, the partnership's balance sheets would look as follows:

Basis FMV

Buildings $100,000 $175,000

Land 200,000 450,000

$300,000 $625,000

Liabilities $250,000 $250,000

Capital, Karen 10,000 75,000

Capital, Parents 25,000 187,500

Capital, Siblings 15,000112,500

$300,000 $625,000

1. How much gain must Karen recognize on transfer of the partnership interest to her alma mater?
2. What is the amount of Karen's charitable contributions deduction?