LO 3, 8, 9, 14 Liz and John formed the equal LJ Partnership on January 1 of the current year Liz contributed $80,000 of cash and land with a fair market value of $90,000 and an adjusted basis of $75,000 John contributed equipment with a fair market value of $170,000 and an adjusted basis of $20,000 John had used the equipment in his sole proprietorship a How much gain or loss will Liz, John, and the partnership realize b How much gain or loss will Liz, John, and the partnership recognize c What tax bases will Liz and John take in their partnership interests d What $ 704(b) book basis will Liz and John take in their partnership interests e What bases will LJ take in the assets it receives f Are there any differences between inside basis and outside basis Explain g How will the partnership depreciate any assets it receives from the partners h Do additional considerations arise because of the difference between the basis and fair market values of the property John contributed Explain LO 3, 8, 9, 14 Liz and John formed the equal LJ Partnership on January 1 of the current year Liz contributed $80,000 of cash and land with a fair market value of $90,000 and an adjusted basis of $75,000 John contributed equipment with a fair market value of $170,000 and an adjusted basis of $20,000 John had used the equipment in his sole proprietorship a How much gain or loss will Liz, John, and the partnership realize b How much gain or loss will Liz, John, and the partnership recognize c What tax bases will Liz and John take in their partnership interests d What $ 704(b) book basis will Liz and John take in their partnership interests e What bases will LJ take in the assets it receives f Are there any differences between inside basis and outside basis Explain g How will the partnership depreciate any assets it receives from the partners h Do additional considerations arise because of the difference between the basis and fair market values of the property John contributed Explain

Question

LO 3, 8, 9, 14 Liz and John formed the equal LJ Partnership on January 1 of the current year  Liz contributed $80,000 of cash and land with a fair market value of $90,000 and an adjusted basis of $75,000  John contributed equipment with a fair market value of $170,000 and an adjusted basis of $20,000  John had used the equipment in his sole proprietorship a  How much gain or loss will Liz, John, and the partnership realize  b  How much gain or loss will Liz, John, and the partnership recognize  c  What tax bases will Liz and John take in their partnership interests  d  What $ 704(b) book basis will Liz and John take in their partnership interests  e  What bases will LJ take in the assets it receives  f  Are there any differences between inside basis and outside basis  Explain  g  How will the partnership depreciate any assets it receives from the partners  h  Do additional considerations arise because of the difference between the basis and fair market values of the property John contributed  Explain  LO 3, 8, 9, 14 Liz and John formed the equal LJ Partnership on January 1 of the current year  Liz contributed $80,000 of cash and land with a fair market value of $90,000 and an adjusted basis of $75,000  John contributed equipment with a fair market value of $170,000 and an adjusted basis of $20,000  John had used the equipment in his sole proprietorship a  How much gain or loss will Liz, John, and the partnership realize  b  How much gain or loss will Liz, John, and the partnership recognize  c  What tax bases will Liz and John take in their partnership interests  d  What $ 704(b) book basis will Liz and John take in their partnership interests  e  What bases will LJ take in the assets it receives  f  Are there any differences between inside basis and outside basis  Explain  g  How will the partnership depreciate any assets it receives from the partners  h  Do additional considerations arise because of the difference between the basis and fair market values of the property John contributed  Explain

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Question

LO.3, 8, 9, 14 Liz and John formed the equal LJ Partnership on January 1 of the current year. Liz contributed $80,000 of cash and

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