Question: Case 2 Three individuals form the ABC partnership and each contribute the following to form the partnership: Cash: $35,000.00 Future services to be rendered to

Case 2

Three individuals form the ABC partnership and each contribute the following to form the partnership:

  • Cash: $35,000.00
  • Future services to be rendered to the partnership worth: $350,000
  • Real property with a basis of $300,000.00 and a fair market value of $350,000.00.

Tasks:

  1. What is each partner's original basis in the partnership interest?
  2. What is the partnership's basis in each partner's contribution?

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