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Dennis, Suzy, and Katherine form a partnership. Dennis and Suzy give equipment and a building, respectively. Katherine agrees to perform all of the accounting
Dennis, Suzy, and Katherine form a partnership. Dennis and Suzy give equipment and a building, respectively. Katherine agrees to perform all of the accounting and office work in exchange for a 10% interest. Dennis's equipment Suzy's building Katherine's services $ FMV Basis Partnership % $190,000 $19,000 $190,000 $76,000 0 $ 45% 45% 0 10% Required: a. What amount of gain, if any, do each of the partners recognize? b. What is the basis for each partner in his or her partnership interest? c. What is the basis to the partnership of each asset? Complete this question by entering your answers in the tabs below. Required a Required b Required c What amount of gain, if any, do each of the partners recognize? Partner Dennis Suzy Katherine Gain
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