1)Tom, Jerry and Remy decide to form a partnership:

Using the data below, compute the inside basis for the partnership: $______________

What members bring to Partnership

Tom

Jerry

Remy

Cash

$1,000 tom

$2,000 jerry

$3,000 remy

Inventory - FMV

$3,000 tom

$2,000 jerry

$1,000 remy

Inventory - Tax basis

$1,000 tom

$2,000 jerry

$3,000 remy

Land - FMV

$3,000 tom

$4,000 jerry

$5,000 remy

Land - Tax basis

$5,000 tom

$4,000 jerry

$3,000 remy

Vehicle - FMV

$3,000 tom

$4,000 jerry

$5,000 remy

Vehicle - Tax Basis

$5,000 tom

$3,000 jerry

$2,000 remy

A/R

$5,000 tom

$6,000 jerry

$7,000 remy

A/P

$3,000 tom

$4,000 jerry

$5,000 remy

Loans (transferred to partnership)

$2,000 tom

$4,000 jerry

$6,000 remy