Question
Darvish contributes a machine having an adjusted basis of $15,000 and an FMV of $20,000 for a 15% partnership interest. Darvish had taken $5,000 of
Darvish contributes a machine having an adjusted basis of $15,000 and an FMV of $20,000 for a 15% partnership interest. Darvish had taken $5,000 of depreciation prior to the contribution. The partnership has no liabilities. As a result of the contribution, Darvish must recognize
A) no gain or loss.
B) a $5,000 Sec. 1245 gain.
C) a $5,000 capital gain.
D) $5,000 ordinary income.
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Creative And Innovative Auditing
Authors: Jeffrey Ridley
1st Edition
1472474627, 9781472474629
