Linda and Ellen form an equal partnership. Linda contributes cash of $20,000 in exchange for a 50
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Linda and Ellen form an equal partnership. Linda contributes cash of $20,000 in exchange for a 50 percent partnership interest. Ellen contributes property with a fair market value of $30,000 (adjusted basis of $18,000) and subject to a liability of $10,000 in exchange for her 50 percent interest in the partnership. What amount of gain must Ellen recognize as a result of her transfer of property to the partnership?
a. $0
b. $7,000
c. $14,000
d. $20,000
e. None of the above
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Related Book For
Income Tax Fundamentals 2017
ISBN: 9781305872738
35th Edition
Authors: Gerald E. Whittenburg, Steven Gill, Martha Altus Buller
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