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Jack contributes the following asset to a new partnership: Land FMV$200,000; Mortgage $80,000; Tax Basis $100,000. a. How much cash should Jill contribute to make
Jack contributes the following asset to a new partnership: Land FMV$200,000; Mortgage $80,000; Tax Basis $100,000.
a. How much cash should Jill contribute to make this an equitable 50/50 partnership?
b.what is Jacks partnership interest basis? What is Jills partnership interest basis?
c. the partnership sells the land. What is the tax result to each partner? What is each of their bases following the sale of the land?
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