LO 10.2 10. Jay contributes property with a fair market value of $14,000 and an adjusted basis

Question:

LO 10.2 10. Jay contributes property with a fair market value of $14,000 and an adjusted basis of

$4,000 to a partnership in exchange for an 8 percent partnership interest.

a. Calculate the amount of gain recognized by Jay as a result of the transfer of the property to the partnership.

$ ____________

b. Calculate Jay’s basis in his partnership interest immediately following the contribution to the partnership.

$ ____________

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