Question
Cosmo contributed land with a fair market value of $450,000 and a tax basis of $135,000 to Y partnerhsip in exchange for 30% of profits
Cosmo contributed land with a fair market value of $450,000 and a tax basis of $135,000 to Y partnerhsip in exchange for 30% of profits and capital interest. Land is secured by $176,000 nonrecourse debt. Y partnership does not have any other debt.
a. How much of a gain does Cosmo recognize from the contribution?
b. tax basis in partnership interest?
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Accounting Principles Volume 1
Authors: Jerry A. Weygandt, Paul D. Kimmel, Donald E. Kieso
11th Edition
1118751752, 978-1118751756
