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Jamie is talking to his friend Red, who has an interest in Trophy Partnership, about purchasing his partnership interest. Red's outside basis in Trophy Partnership
Jamie is talking to his friend Red, who has an interest in Trophy Partnership, about purchasing his partnership interest. Red's outside basis in Trophy Partnership is $6,500. This includes his $1,800 one-fourth share of the partnership's debt. Red's 704(b) capital account is $13,500. If Jamie bought Red's partnership interest for $10,000, what would Jamie's outside basis be in Trophy Partnership?
A: $10,000
B: $11,800
C: $8,200
D: $6,500
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