On June 1 of the current year, Patti contributes equipment with a $45,000 basis and a $35,000

Question:

On June 1 of the current year, Patti contributes equipment with a $45,000 basis and a $35,000 FMV in exchange for a interest. She purchased the equipment three years ago.
a. What is Patti’s basis in her interest?
b. What is Patti’s holding period of her interest?
c. What is the basis of the equipment in the hands of the What is the holding period of the equipment in the hands of the How will the depreciate the equipment in the year of contribution?
Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...