Question: Lance contributed investment property worth $ 5 2 2 , 5 0 0 , purchased three years ago for $ 2 6 2 , 5

Lance contributed investment property worth $522,500, purchased three years ago for $262,500 cash, to Cloud Peak LLC in exchange for an 80 percent profits and capital interest in the LLC. Cloud Peak owes $450,000 to its suppliers but has no other liabilities.
a. What is Lance's tax basis in his LLC interest?

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