Please explain how you resolved the questions.

29. On July 1, 2015, Clark acquired a 20 percent interest in the D and D Partnership, by contributing a parcel of land for which his basis was $8,000. After the contribution, each of the other two partners owned a 40 percent interest in the D and D Partnership. Upon contribution, the land had a fair market value of $20,000 and was subject to a mortgage of $4,000. Responsibility for the mortgage was assumed by the partnership. Assuming there are no other partnership liabilities, the basis of Clark's interest in the partnership is:

a. $4,000.

b. $4,800.

c. $16,000.

d. $16,800.

30. On July 1, 2015, Clark acquired a 20 percent interest in the D and D Partnership, by contributing a parcel of land for which his basis was $8,000. After the contribution, each of the other two partners owned a 40 percent interest in the D and D Partnership. Upon contribution, the land had a fair market value of $20,000 and was subject to a mortgage of $4,000. Responsibility for the mortgage was assumed by the partnership. What, if any, effect did Clarks contribution have on the basis of the partnership interests owned by the other two partners?

a. none.

b. the other partners bases in their partnership interests were decreased.

c. the other partners bases in their partnership interests were increased.

d. The answer depends on the character of the property in the hands of the partnership.

31. The partners of Martin, Cynthia, Lilly Partnership, that is, Martin, Cynthia, and Lilly, share profits and losses in a ratio of 4:3:1, respectively. The adjusted basis of each partner, as of December 31, 2015, was as follows: Martin, $7,200; Cynthia, $6,000; and Lilly, $2,500. During 2015, the partnership incurred an operating loss of $15,000. The loss is not reflected in the basis figures above. As a result of this loss, what amount is deductible by Martin, Cynthia, and Lilly deduct, respectively, on their individual tax returns for 2015?

a. $6,000, $4,500, and $2,500

b. $6,000, $4,500, and $4,500

c. $7,000, $5,500, and $2,500

d. $7,100, $5,400, and $2,500

e. $7,200, $5,625, and $1,875

32. The TR Partnership had an ordinary operating loss of $48,000 for 2015. The partnership had assets of $58,500 and liabilities of $15,000 at the end of the year. Before allocation of the loss, partner Ashford's one-third capital interest had an adjusted basis of $10,000 at the end of 2015. How much may Ashford deduct on his individual tax return as his share of the partnership loss in 2015?

a. $14,500

b. $10,000

c. $16,000

d. $15,000

e. None of the above

33. Jim Cash, one of two equal partners, contributed business property with a basis to him of $15,000 and a fair market value of $10,000 to the partnership of which he was a member. His capital account was credited with $10,000. The property later was sold for $16,000. As a result of this sale, how much gain or loss is allocable to Jim?

a. $1,000 loss

b. $1,000 gain

c. $500 gain

d. $6,000 loss

e. None of the above

34. On July 1, 2015, Bertram acquired a 30 percent interest in Windward Partnership, by contributing property with an adjusted basis of $5,000 and a fair market value of $12,000. The property was subject to a mortgage of $8,000, which was assumed by Windward Partnership. What is Bertram's basis in his interest in Windward Partnership?

a. $0

b. $4,000

c. $5,000

d. $6,400

35 . As of January 1, 2015, Jody's adjusted basis in her partnership interest was $25,000. Her share of partnership items 2015 is as follows: dividend income of $6,000 and an ordinary loss of $48,000. She received a distribution from the partnership of $15,000 during the year. She must report the following related to these transactions.

a. Dividend income of $6,000, a nontaxable distribution of $15,000, an ordinary loss of

$10,000, and a suspended loss of $38,000.

b. Dividend income of $6,000, an ordinary loss of $31,000, a suspended loss of $17,000, and a

taxable distribution of $15,000.

c. Dividend income of $6,000, a nontaxable distribution of $15,000, an ordinary loss of

$16,000, and a suspended loss of $32,000.

d. Dividend income of $6,000, an ordinary loss of $48,000 and a nontaxable distribution of

$15,000.

e. Dividend income of $6,000, an ordinary loss of $48,000 and a taxable distribution of

$15,000.

36. Robert and Frank are partners in the Quick Freeze partnership, owning respectively 60 percent and 40 percent of the partnership's capital and profits. At the beginning of the year, their bases in their partnership interests were $18,000 and $12,000. During the year, the partnership had the following items of income: partnership ordinary income, $30,000; long-term capital gains, $10,000; and tax-exempt income from municipal bond interest, $5,000. Robert withdrew $8,000 and Frank withdrew $12,000. Their respective bases at the end of the year are:

a. Robert: $45,000; and Frank: $30,000.

b. Robert: $42,000; and Frank: $28,000.

c. Robert: $37,000; and Frank: $18,000.

d. Robert: $34,000; and Frank: $16,000.

e. Robert: $33,000; and Frank: $22,000.

37. On January 2, 2016, Ralph contributed a plot of land to the Tom and Ralph Partnership. Ralph's adjusted basis for this land was $50,000, and its fair market value was $75,000. Under the partnership agreement, Ralph's capital account was credited with the full fair market value of the land. Tom matched Ralp's contribution with a $75,000 cash contribution to the partnership. Thus, each partner's capital account was credited with $75,000. Tom and Ralph share profits and losses equally. What is the adjusted basis of the partnership in the property it received from Ralph?

a. $25,000

b. $37,500

c. $50,000

d. $75,000

29. On July 1, 2015, Clark acquired a 20 percent interest in the D and D Partnership, by contributing a parcel of land for which his basis was $8,000. After the contribution, each of the other two partners owned a 40 percent interest in the D and D Partnership. Upon contribution, the land had a fair market value of $20,000 and was subject to a mortgage of $4,000. Responsibility for the mortgage was assumed by the partnership. Assuming there are no other partnership liabilities, the basis of Clark's interest in the partnership is:

a. $4,000.

b. $4,800.

c. $16,000.

d. $16,800.

30. On July 1, 2015, Clark acquired a 20 percent interest in the D and D Partnership, by contributing a parcel of land for which his basis was $8,000. After the contribution, each of the other two partners owned a 40 percent interest in the D and D Partnership. Upon contribution, the land had a fair market value of $20,000 and was subject to a mortgage of $4,000. Responsibility for the mortgage was assumed by the partnership. What, if any, effect did Clarks contribution have on the basis of the partnership interests owned by the other two partners?

a. none.

b. the other partners bases in their partnership interests were decreased.

c. the other partners bases in their partnership interests were increased.

d. The answer depends on the character of the property in the hands of the partnership.

31. The partners of Martin, Cynthia, Lilly Partnership, that is, Martin, Cynthia, and Lilly, share profits and losses in a ratio of 4:3:1, respectively. The adjusted basis of each partner, as of December 31, 2015, was as follows: Martin, $7,200; Cynthia, $6,000; and Lilly, $2,500. During 2015, the partnership incurred an operating loss of $15,000. The loss is not reflected in the basis figures above. As a result of this loss, what amount is deductible by Martin, Cynthia, and Lilly deduct, respectively, on their individual tax returns for 2015?

a. $6,000, $4,500, and $2,500

b. $6,000, $4,500, and $4,500

c. $7,000, $5,500, and $2,500

d. $7,100, $5,400, and $2,500

e. $7,200, $5,625, and $1,875

32. The TR Partnership had an ordinary operating loss of $48,000 for 2015. The partnership had assets of $58,500 and liabilities of $15,000 at the end of the year. Before allocation of the loss, partner Ashford's one-third capital interest had an adjusted basis of $10,000 at the end of 2015. How much may Ashford deduct on his individual tax return as his share of the partnership loss in 2015?

a. $14,500

b. $10,000

c. $16,000

d. $15,000

e. None of the above

33. Jim Cash, one of two equal partners, contributed business property with a basis to him of $15,000 and a fair market value of $10,000 to the partnership of which he was a member. His capital account was credited with $10,000. The property later was sold for $16,000. As a result of this sale, how much gain or loss is allocable to Jim?

a. $1,000 loss

b. $1,000 gain

c. $500 gain

d. $6,000 loss

e. None of the above

34. On July 1, 2015, Bertram acquired a 30 percent interest in Windward Partnership, by contributing property with an adjusted basis of $5,000 and a fair market value of $12,000. The property was subject to a mortgage of $8,000, which was assumed by Windward Partnership. What is Bertram's basis in his interest in Windward Partnership?

a. $0

b. $4,000

c. $5,000

d. $6,400

35 . As of January 1, 2015, Jody's adjusted basis in her partnership interest was $25,000. Her share of partnership items 2015 is as follows: dividend income of $6,000 and an ordinary loss of $48,000. She received a distribution from the partnership of $15,000 during the year. She must report the following related to these transactions.

a. Dividend income of $6,000, a nontaxable distribution of $15,000, an ordinary loss of

$10,000, and a suspended loss of $38,000.

b. Dividend income of $6,000, an ordinary loss of $31,000, a suspended loss of $17,000, and a

taxable distribution of $15,000.

c. Dividend income of $6,000, a nontaxable distribution of $15,000, an ordinary loss of

$16,000, and a suspended loss of $32,000.

d. Dividend income of $6,000, an ordinary loss of $48,000 and a nontaxable distribution of

$15,000.

e. Dividend income of $6,000, an ordinary loss of $48,000 and a taxable distribution of

$15,000.

36. Robert and Frank are partners in the Quick Freeze partnership, owning respectively 60 percent and 40 percent of the partnership's capital and profits. At the beginning of the year, their bases in their partnership interests were $18,000 and $12,000. During the year, the partnership had the following items of income: partnership ordinary income, $30,000; long-term capital gains, $10,000; and tax-exempt income from municipal bond interest, $5,000. Robert withdrew $8,000 and Frank withdrew $12,000. Their respective bases at the end of the year are:

a. Robert: $45,000; and Frank: $30,000.

b. Robert: $42,000; and Frank: $28,000.

c. Robert: $37,000; and Frank: $18,000.

d. Robert: $34,000; and Frank: $16,000.

e. Robert: $33,000; and Frank: $22,000.

37. On January 2, 2016, Ralph contributed a plot of land to the Tom and Ralph Partnership. Ralph's adjusted basis for this land was $50,000, and its fair market value was $75,000. Under the partnership agreement, Ralph's capital account was credited with the full fair market value of the land. Tom matched Ralp's contribution with a $75,000 cash contribution to the partnership. Thus, each partner's capital account was credited with $75,000. Tom and Ralph share profits and losses equally. What is the adjusted basis of the partnership in the property it received from Ralph?

a. $25,000

b. $37,500

c. $50,000

d. $75,000

29. On July 1, 2015, Clark acquired a 20 percent interest in the D and D Partnership, by contributing a parcel of land for which his basis was $8,000. After the contribution, each of the other two partners owned a 40 percent interest in the D and D Partnership. Upon contribution, the land had a fair market value of $20,000 and was subject to a mortgage of $4,000. Responsibility for the mortgage was assumed by the partnership. Assuming there are no other partnership liabilities, the basis of Clark's interest in the partnership is:

a. $4,000.

b. $4,800.

c. $16,000.

d. $16,800.

30. On July 1, 2015, Clark acquired a 20 percent interest in the D and D Partnership, by contributing a parcel of land for which his basis was $8,000. After the contribution, each of the other two partners owned a 40 percent interest in the D and D Partnership. Upon contribution, the land had a fair market value of $20,000 and was subject to a mortgage of $4,000. Responsibility for the mortgage was assumed by the partnership. What, if any, effect did Clarks contribution have on the basis of the partnership interests owned by the other two partners?

a. none.

b. the other partners bases in their partnership interests were decreased.

c. the other partners bases in their partnership interests were increased.

d. The answer depends on the character of the property in the hands of the partnership.

31. The partners of Martin, Cynthia, Lilly Partnership, that is, Martin, Cynthia, and Lilly, share profits and losses in a ratio of 4:3:1, respectively. The adjusted basis of each partner, as of December 31, 2015, was as follows: Martin, $7,200; Cynthia, $6,000; and Lilly, $2,500. During 2015, the partnership incurred an operating loss of $15,000. The loss is not reflected in the basis figures above. As a result of this loss, what amount is deductible by Martin, Cynthia, and Lilly deduct, respectively, on their individual tax returns for 2015?

a. $6,000, $4,500, and $2,500

b. $6,000, $4,500, and $4,500

c. $7,000, $5,500, and $2,500

d. $7,100, $5,400, and $2,500

e. $7,200, $5,625, and $1,875

32. The TR Partnership had an ordinary operating loss of $48,000 for 2015. The partnership had assets of $58,500 and liabilities of $15,000 at the end of the year. Before allocation of the loss, partner Ashford's one-third capital interest had an adjusted basis of $10,000 at the end of 2015. How much may Ashford deduct on his individual tax return as his share of the partnership loss in 2015?

a. $14,500

b. $10,000

c. $16,000

d. $15,000

e. None of the above

33. Jim Cash, one of two equal partners, contributed business property with a basis to him of $15,000 and a fair market value of $10,000 to the partnership of which he was a member. His capital account was credited with $10,000. The property later was sold for $16,000. As a result of this sale, how much gain or loss is allocable to Jim?

a. $1,000 loss

b. $1,000 gain

c. $500 gain

d. $6,000 loss

e. None of the above

34. On July 1, 2015, Bertram acquired a 30 percent interest in Windward Partnership, by contributing property with an adjusted basis of $5,000 and a fair market value of $12,000. The property was subject to a mortgage of $8,000, which was assumed by Windward Partnership. What is Bertram's basis in his interest in Windward Partnership?

a. $0

b. $4,000

c. $5,000

d. $6,400

35 . As of January 1, 2015, Jody's adjusted basis in her partnership interest was $25,000. Her share of partnership items 2015 is as follows: dividend income of $6,000 and an ordinary loss of $48,000. She received a distribution from the partnership of $15,000 during the year. She must report the following related to these transactions.

a. Dividend income of $6,000, a nontaxable distribution of $15,000, an ordinary loss of

$10,000, and a suspended loss of $38,000.

b. Dividend income of $6,000, an ordinary loss of $31,000, a suspended loss of $17,000, and a

taxable distribution of $15,000.

c. Dividend income of $6,000, a nontaxable distribution of $15,000, an ordinary loss of

$16,000, and a suspended loss of $32,000.

d. Dividend income of $6,000, an ordinary loss of $48,000 and a nontaxable distribution of

$15,000.

e. Dividend income of $6,000, an ordinary loss of $48,000 and a taxable distribution of

$15,000.

36. Robert and Frank are partners in the Quick Freeze partnership, owning respectively 60 percent and 40 percent of the partnership's capital and profits. At the beginning of the year, their bases in their partnership interests were $18,000 and $12,000. During the year, the partnership had the following items of income: partnership ordinary income, $30,000; long-term capital gains, $10,000; and tax-exempt income from municipal bond interest, $5,000. Robert withdrew $8,000 and Frank withdrew $12,000. Their respective bases at the end of the year are:

a. Robert: $45,000; and Frank: $30,000.

b. Robert: $42,000; and Frank: $28,000.

c. Robert: $37,000; and Frank: $18,000.

d. Robert: $34,000; and Frank: $16,000.

e. Robert: $33,000; and Frank: $22,000.

37. On January 2, 2016, Ralph contributed a plot of land to the Tom and Ralph Partnership. Ralph's adjusted basis for this land was $50,000, and its fair market value was $75,000. Under the partnership agreement, Ralph's capital account was credited with the full fair market value of the land. Tom matched Ralp's contribution with a $75,000 cash contribution to the partnership. Thus, each partner's capital account was credited with $75,000. Tom and Ralph share profits and losses equally. What is the adjusted basis of the partnership in the property it received from Ralph?

a. $25,000

b. $37,500

c. $50,000

d. $75,000