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in March 2014, Jerome Jenkins entered a partnership by contributing to the partnership $10,000 cash and machinery which had an adjusted basis to him of

in March 2014, Jerome Jenkins entered a partnership by contributing to the partnership $10,000 cash and machinery which had an adjusted basis to him of $6000 and a fair market value of $9000. Jerome acquired the machinery in 2011 at a cost of $12000. His capital account per books was credited for $20,000, which constituted 25 percent of total partnership capital, and goodwill was recorded for the difference.

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