Question: Lance contributed investment property worth $ 5 0 0 , 0 0 0 , purchased three years ago for $ 2 0 0 , 0

Lance contributed investment property worth $500,000, purchased three years ago for $200,000 cash, to Cloud Peak LLC in exchange for an 85 percent profits and capital interest in the LLC. Cloud Peak owes $300,000 to its suppliers but has no other liabilities.
a.What is Lance's tax basis in his LLC interest?

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