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Moe, Johnny, and Raymond form a partnership and contribute the following assets: FMV Basis Partnership % Moes inventory $ 65,800 $ 14,000 33.3% Johnnys building
Moe, Johnny, and Raymond form a partnership and contribute the following assets:
FMV | Basis | Partnership % | |||||
Moes inventory | $ | 65,800 | $ | 14,000 | 33.3% | ||
Johnnys building | $ | 171,120 | $ | 110,400 | 33.3% | ||
Raymonds cash | $ | 42,000 | $ | 42,000 | 33.3% | ||
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Johnnys building has a mortgage of $82,800, which the partnership assumes.
- What amount of gain, if any, do each of the partners recognize?
- What is the basis for each partner in his partnership interest?
Partner a. Gain b. Ending Basis Moe $0 Johnny $0 Raymond $0 - What is the basis to the partnership in each asset?
Asset Basis Cash Inventory Building - Would Johnny report any gain if the basis in the building were $57,400?
Gain
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