Question
Mark and Erik formed the M&E partnership as equal partners. The following assets were contributed: Asset Adjusted basic Fair market value Mark Cash 60000 60000
Mark and Erik formed the M&E partnership as equal partners. The following assets were contributed:
| Asset | Adjusted basic | Fair market value | ||
| Mark | Cash | 60000 | 60000 | |
| Erik | Land | 50000 | 70000 |
The land was subject to a $10,000 mortgage that was assumed by the partnership.
Calculate the initial tax basis for the partnership interests of Mark and Erik
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Management Accounting
Authors: Anthony A. Atkinson, Robert S. Kaplan, S. Mark Young, Rajiv D. Banker, Pajiv D. Banker
3rd Edition
9780130101952
