Laura and Marty form a 50/50 partnership (LM Partners) in 2018. Laura contributes land with a fair market value of $800,000 and an adjusted basis of $500,000. The land is subject to a $250,000...

Laura and Marty form a 50/50 partnership (LM Partners) in 2018.  Laura contributes land with a fair market value of $800,000 and an adjusted basis of $500,000.  The land is subject to a $250,000 mortgage which the partnership assumes.  Marty contributes $550,000 of cash.

Determine Laura’s outside basis and Marty’s outside basis after each of them has contributed their property and cash to form the partnership.