An individual who runs a solo practice agrees to merge her business with a large partnership in return for a 5% share in the partnership. The individual's solo practice has a fair market value of $500,000 and a $400,000 basis to the individual. The partnership also assumes the individual's $200,000 in liabilities related to the solo practice.

An individual who runs a solo practice agrees to merge her business with a large partnership in return for a 5% share in the partnership. The individual's solo practice has a fair market value of $500,000 and a $400,000 basis to the individual. The partnership also assumes the individual's $200,000 in liabilities related to the solo practice. What is the individu al '5 basis in the pa rtne rs h ip if the partners hip had $3,000,000 in liabilities prior to this trans action? Your Correct Answer Answer Answer Choices $3 60,000 54 60 ,000 55 50,000 $6 50,000