Question
Johnson contributes property to a partnership with a $400,000 value and a $300,000 basis for a 10% interest in the partnership. One month after the
Johnson contributes property to a partnership with a $400,000 value and a $300,000 basis for a 10% interest in the partnership. One month after the contribution, the partnership borrows $300,000 and distributes $230,000 of this amount to Johnson. Johnson is assigned a $30,000 share of this partnership liability.
What is the partnerships basis in the property contributed by Johnson?
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Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
26th edition
128574361X, 978-1305446052, 1305446054, 978-1285743615
