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Kay and Sam form an equal partnership. Sam contributes cash of $10,000; Kay contributes Land with a $6,000 basis and a $10,000 fair market value.
Kay and Sam form an equal partnership. Sam contributes cash of $10,000; Kay contributes Land with a $6,000 basis and a $10,000 fair market value. Two years later the land is sold for $12,000. How is the gain allocated to the partners?
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Managerial Accounting
Authors: Wendy M. Tietz, Louis Beaubien, Karen W. Braun
3rd Canadian edition
