George, Peppa and Suzy are equal partners in GPS partnership. They also have equal bases (outside) and capital accounts. The partnership has the following balance sheet with items designated by their fair market values and tax bases (inside basis) at the time of contribution. Assets Inside Basis FMV Cash 30,000 30,000 Inventory 60,000 90,000 Total 90,000 120,000 Liabilities Outside Basis Capital Accounts George 30,000 40,000 Peppa 30,000 40,000 Suzy 30,000 40,000 If Grampy buys Peppa's share for $39,000, what will Grampy's inside and outside basis? His inside basis is $39.000, and outside basis is $30,000 His inside and outside basis are both $39,000 His inside basis is $30,000, and outside basis is $39,000 His inside and outside basis are both $30,000

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The correct answer is Grampys inside basis is 39000 Grampys outside basis is 30000 Heres the breakdo... View the full answer