Question
Bob and Harry form a partnership. Harry contributes $100,000 (FMV) in equipment that has a basis of $50,000 for a 1/3 share of the partnership,
Bob and Harry form a partnership. Harry contributes $100,000 (FMV) in equipment that has a basis of $50,000 for a 1/3 share of the partnership, while Bob contributes his expertise for a 2/3 share of the partnership. Harry share is worth $100,000, while Bob's is worth $200,000. What gain or loss does Harry Recognize on the transfer?
- $50,000 gain
- $50,000 loss
- $100,000 gain
- 0 gain/loss
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Financial Accounting A Global Perspective
Authors: Robert Libby, Patricia Libby, Daniel G Short
5th Edition
0071107746, 978-0071107747
