Question: 20. _____ Bob Barker contributed land and building with an adjusted basis to Bob of $50,000 and a fair market value of $100,000 subject to

20. _____ Bob Barker contributed land and building with an adjusted basis to Bob of $50,000 and a fair market value of $100,000 subject to a recourse mortgage of $30,000 in exchange for a one-third interest in the Alpha Partnership. Alpha will assume the mortgage on the building. What is Bobs basis for his partnership interest?

a. $0

b. $20,000

c. $50,000

d. $30,000

21. _____ Refer to the facts of the previous question. What is Alphas basis in the building contributed by Bob?

a. $100,000

b. $20,000

c. $50,000

d. $30,000

22. _____ Refer to the facts of the previous two questions. If Alpha sells the land and building for $130,000, how much taxable gain is allocated to Bob? Ignore any issues regarding depreciation taken by the partnership after contribution.

a. $10,000

b. $26,667

c. $80,000

d. $60,000

23. _____ Refer to the facts of the previous question. If Alpha had been an S Corporation and Bob had been a one-third shareholder, what would be the amount of gain allocated to Bob?

a. $10,000

b. $26,667

c. $80,000

d. $60,000

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