Question
Alice has had an interest in a partnership, Quagmire, for three years. On November 1, she contributed her partnership interest, subject to her share of
Alice has had an interest in a partnership, Quagmire, for three years. On November 1, she contributed her partnership interest, subject to her share of partnership liabilities, to the local nonprofit cancer research center. The partnership has no assets that would generate ordinary income if sold. At the time of the contribution, the fair market value (FMV) of her partnership interest was $200,000. Her original contribution was $90,000, and her share of partnership losses was $110,000. In addition, Alice's share of partnership liabilities was $120,000. What is the amount of her charitable contribution?
a) $200,000 b) $ 90,000 c) $ 80,000 d) $120,000
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