Question: Max, Sam and Mary are to be equal (1/3) general partners in the MSM partnership. Max transferred land with an adjusted basis of $220,000 and

Max, Sam and Mary are to be equal (1/3) general partners in the MSM partnership. Max transferred land with an adjusted basis of $220,000 and a FMV of $560,000 to the partnership. Sam and Mary each transferred cash of $420,000 to the partnership. A few days after the formation of the MSM partnership, Max receives a $140,000 cash distribution from the partnership.

a. What is the amount of gain, if any, that Max must recognize as a consequence of the above transactions? b. What is MSM's inside basis in the land? c. What is Max's outside basis in his partnership interest?

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