Question
George and Morris formed a new partnership three years ago. At inception George contributed equipment with a basis of $97,000 and FMV of $101,000. This
George and Morris formed a new partnership three years ago. At inception George contributed equipment with a basis of $97,000 and FMV of $101,000. This year (three years later), the equipment is distributed to Morris when its FMV is $116,000. No other distributions have been made since the partnership was formed. How much pre-contribution gain is allocated to George when the property is distributed to Morris?
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Econometric Analysis
Authors: William H. Greene
5th Edition
130661899, 978-0130661890
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