Betty contributed property with a $40,000 basis and fair market value of $85,000 to the Rust Partnership
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Question:
Betty contributed property with a $40,000 basis and fair market value of $85,000 to the Rust Partnership in exchange for a 50% interest in partnership capital and profits. During the first year of partnership operations, Rust had net taxable income of $30,000 and tax-exempt income of $28,000. The partnership distributed $12,000 cash to Betty. Her share of partnership recourse liabilities on the last day of the partnership year was $16,000. Betty's adjusted basis (outside basis) for her partnership interest at year-end is:
Group of answer choices
$73,000
$72,000
$98,000
$55,000
Some other amount.
Related Book For
Corporate Finance
ISBN: 978-0077861759
10th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
Posted Date: