Question
Q/ A and B form general partnership AB, A contributes real property with a FMV of $100,000 subject to a recourse mortgage of $60,000 in
Q/ A and B form general partnership AB, A contributes real property with a FMV of $100,000 subject to a recourse mortgage of $60,000 in exchange for an 80% interest in the partnership. The basis of the contributed property is $5,000. B contributes $10,000 cash for a 20% interest in the partnership.
What are A and B's basis in their partnership interest immediately after the formation of the partnership?
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Financial Accounting IFRS Principles
Authors: Ilse Lubbe, Goolam Modack, Shelly Herbert
5th Edition
0190746920, 978-0190746926
