LO.5 Jo and Velma are equal owners of the JV Partnership, with Jo investing $500,000 and Velma
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LO.5 Jo and Velma are equal owners of the JV Partnership, with Jo investing $500,000 and Velma contributing land and a building (adjusted basis of $125,000; fair market value of $500,000). In addition, the entity borrows $250,000 using recourse financing and $100,000 using nonrecourse financing.
a. What are Jo’s and Velma’s bases for their partnership interests (i.e., outside bases)?
b. What are Jo’s and Velma’s at-risk bases?
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Related Book For 
South Western Federal Taxation 2013 Corporations Partnerships Estates And Trusts
ISBN: 9781133495574
36th Edition
Authors: William H. Hoffman, William A. Raabe, James E. Smith, David M. Maloney
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