Question
A, B, C, and D form partnership ABCD.Partner A contributes property with a fair market value of $200,000 subject to a non-recourse mortgage of $150,000.
A, B, C, and D form partnership ABCD.Partner A contributes property with a fair market value of $200,000 subject to a non-recourse mortgage of $150,000. The tax basis of the property contributed by Partner A is $100,000.Partner B contributes property with a FMV of $150,000 subject to a non-recourse mortgage of $100,000.The tax basis of the property contributed by Partner B is $70,000.Partners C and D contribute $50,000 cash each, which is used to purchase a new property for $400,000 subject to a $300,000 non-recourse mortgage.
What is the total debt allocation to each partner?
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Fundamentals Of Accounting
Authors: Claudia Gilbertson
10th Edition
1111581169, 978-1111581169
