How is Mario’s basis in his accrual method partnership interest affected by each of the following changes in partnership assets and liabilities (assuming he has a 50% interest in the partnership)?
a. Mario contributes a building with a $100,000 FMV, and a $70,000 adjusted basis. The building is subject to a $50,000 mortgage, which the partnership assumes.
b. The partnership’s accounts payable increase by $50,000 during the tax year.
c. The partnership pays off a $40,000 bank note that was outstanding for several years.
d. The partnership distributes $10,000 cash each to Mario and his partner.