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1. Jake has a Schedule C (that reports on the cash basis of accounting) with the following assets: FMV $4,500 Basis Cash $4,500 Accounts Receivable

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1. Jake has a Schedule C (that reports on the cash basis of accounting) with the following assets: FMV $4,500 Basis Cash $4,500 Accounts Receivable (A/R) 10,000 Building 95,000 0 155,000 Jake contributes these assets to form AJ Partnership and receives a 50% interest. His basis in the partnership interest is

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