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Julie and Kate form an equal partnership during the current year. Julie contributes cash of $200,000, and Kate contributes property (adjusted basis of $90,000, fair

Julie and Kate form an equal partnership during the current year. Julie contributes cash of $200,000, and Kate contributes property (adjusted basis of $90,000, fair market value of $260,000). The property was subject to a liability of $60,000 that is now assumed by the partnership. As a result of these transactions, Kate has a basis in her partnership interest of $120,000

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