Question
Joyce Adams, Tom Baker and Rose Ryan are to be equal general partners in the ABR partnership. Adams contributed $404,000 of cash, Baker contributed $442,000
Joyce Adams, Tom Baker and Rose Ryan are to be equal general partners in the ABR partnership. Adams contributed $404,000 of cash, Baker contributed $442,000 of cash and Ryan contributed cash of $378,000 to the partnership. The partnership used $1,200,000 of its cash and borrowed $2,100,000 on a recourse basis to purchase a parcel of Land for $3,300,000.
1. Immediately after the purchase of the Land, what is Adams' capital account balance and her outside basis in her partnership interest?
2. Immediately after the purchase of the Land, what is Baker's capital account balance and his outside basis in his partnership interest?
3. Immediately after the purchase of the Land, what is Ryan's capital account balance and her outside basis in her partnership interest?
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