Question
An individual received a 70% capital interest in a general partnership by contributing the following: Investment land purchased 10 years ago for $40,000 and valued
An individual received a 70% capital interest in a general partnership by contributing the following:
Investment land purchased 10 years ago for $40,000 and valued at $60,000
A personal (nonbusiness) truck purchased nine months ago for $12,000 and valued at $10,000
The partnership obtains a $50,000 nonrecourse mortgage loan on the land. How much is this general partner's basis in the partnership after the contribution and loan?
A. $85,000
B. $87,000
C. $100,000
D. $102,000
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Financial Accounting Reporting And Analysis
Authors: Earl K. Stice, James D. Stice
7th Edition
0324227329, 978-0324227321
