1. Three individuals form the PST partnership. The partner's contributions to the partnership are: Pat Cash,...

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1. Three individuals form the PST partnership. The partner's contributions to the partnership are: Pat Cash, $30,000 Sal Organizational Services, fmv $30,000 Tim Store Building, fmv $30,000; book and tax basis to Tim, $27,800 Each partner receives an equal profits interest in the new business. The profit sharing ratio is used to allocate minimum gain and debt, under the partnership agreement. A) Compute each partner's original basis in the partnership interest. B) What is the basis of the store to PST? 1. Three individuals form the PST partnership. The partner's contributions to the partnership are: Pat Cash, $30,000 Sal Organizational Services, fmv $30,000 Tim Store Building, fmv $30,000; book and tax basis to Tim, $27,800 Each partner receives an equal profits interest in the new business. The profit sharing ratio is used to allocate minimum gain and debt, under the partnership agreement. A) Compute each partner's original basis in the partnership interest. B) What is the basis of the store to PST?

Answer rating: 100% (QA)

A Partners Original Basis in Partnership Interest Pat Cash contribution 3... View the full answer