On 1 2 21, Casey bought a 40 ownership interest in a partnership in exchange for $100,000 cash plus land that had an FMV of $800,000, which Casey had $200,000 of basis in This partnership is 100 equity funded and has never had any debt At the end of the tax year (12 31 21), the following is reporte...

OptionC 458000 Working Cash 100000 L ...

On 1/2/21, Casey bought a 40% ownership interest in a partnership in exchange for $100,000 cash plus

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On 1/2/21, Casey bought a 40% ownership interest in a partnership in exchange for $100,000 cash plus land that had an FMV of $800,000, which Casey had $200,000 of basis in. This partnership is 100% equity funded and has never had any debt. At the end of the tax year (12/31/21), the following is reported for the partnership: $500,000 ordinary taxable business income, $40,000 tax-exempt income, and $20,000 non-deductible expenses. What is Casey’s basis in the partnership on 12/31/21, assuming Casey took a $50,000 cash distribution just prior to year-end?
1. $0
2. $258,000
3. $458,000
4. $958,000