In the current year, Anderson formed an equal partnership with Camilla. Anderson contributed land with an adjusted
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In the current year, Anderson formed an equal partnership with Camilla. Anderson contributed land with an adjusted basis of $50,000 and a fair market value of $225,000. Anderson also contributed $75,000 cash to the partnership. Camilla contributed land with an adjusted basis of $105,000 and a fair market value of $240,000. The land contributed by Anderson was encumbered by a $60,000 nonrecourse debt. Assume the partners share debt equally. Immediately after the formation, the basis of Anderson’s partnership interest is:
a. $95,000.
b. $125,000.
c. $240,000.
d. $300,000.
e. None of the above.
Related Book For
Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
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