Question
Gerald received a one-third capital and profit (loss) interest in XYZ Limited Partnership (LP). In exchange for this interest, Gerald contributed a building with a
Gerald received a one-third capital and profit (loss) interest in XYZ Limited Partnership (LP). In exchange for this interest, Gerald contributed a building with a FMV of $32,000. His adjusted basis in the building was $16,000. In addition, the building was encumbered with a $9,600 nonrecourse mortgage that XYZ, LP assumed at the time the property was contributed. What is Gerald's outside basis immediately after his contribution?
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$6,400.
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$9,600.
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$22,400.
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$25,600.
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Financial Accounting Concepts And Applications
Authors: K. Fred Skousen, James D. Stice, Earl Kay. Stice, W. Steve Albrecht
7th Edition
0538876255, 978-0538876254
