Question: Rania contributed equipment worth $ 2 3 0 , 0 0 0 , purchased 1 1 months ago for $ 2 5 3 , 0

Rania contributed equipment worth $

230, 000,

purchased

11

months ago for $

253, 000

cash and used in her sole proprietorship, to Sand Creek LLC in exchange for a

10

percent profits and capital interest in the LLC

.

Rania agreed to guarantee all $

12, 500

of Sand Creek's accounts payable, but she did not guarantee any portion of the $

115, 000

nonrecourse mortgage securing Sand Creek's office building. Other than the accounts payable and mortgage, Sand Creek does not have any liabilities to other creditors.

.

What is Sand Creek's initial basis in the contributed property?

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