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AB Corporation and YZ Corporation formed a partnership to construct a shopping mall. AB contributed $ 5 0 1 , 0 0 0 cash, and
AB Corporation and YZ Corporation formed a partnership to construct a shopping mall. AB contributed $ cash, and YZ contributed land $ FMV and $ basis in exchange for a percent interest in ABYZ Partnership. Immediately after its formation, ABYZ borrowed $ from a local bank. The debt is recourse unsecured by any specific partnership assetRequired:Compute each partners initial basis in its partnership interest, assuming that both AB and YZ are general partners.Compute each partners initial basis in its partnership interest, assuming that AB is a general partner, and YZ is a limited partner.
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