Question
Milo contributes a building with a fair market value of $400,000 to a new partnership in exchange for a 25% interest. His adjusted basis in
Milo contributes a building with a fair market value of $400,000 to a new partnership in exchange for a 25% interest. His adjusted basis in the building is $125,000, which is subject to a $100,000 mortgage. The partnership assumes the mortgage. What is Milo's basis in his partnership interest?
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| a. | $50,000 |
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| b. | $75,000 |
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| c. | $100,000 |
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| d. | $125,000 |
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| e. | $400,000 |
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Accounting
Authors: Carl S. Warren, James M. Reeve, Philip E. Fess
19th Edition
0538869720, 978-0538869720
