Question: Problem 14-22 (LO. 2, 5) Lee, Brad, and Rick form the LBR Partnership on January 1 of the current year. In return for a 25%
Problem 14-22 (LO. 2, 5)
Lee, Brad, and Rick form the LBR Partnership on January 1 of the current year. In return for a 25% interest, Lee transfers property (basis of $15,000, fair market value of $27,500) subject to a nonrecourse liability of $20,000. The liability is assumed by the partnership. Brad transfers property (basis of $16,000, fair market value of $7,500) for a 25% interest, and Rick transfers cash of $15,000 for the remaining 50% interest.
If an amount is zero, enter "0".
a. Lee's basis in his partnership interest is $fill in the blank 3c250c09f021f8b_1.
The partner's basis also is affected by (1) postacquisition contributions of cash or property to the partnership and (2) postacquisition distributions of cash or property from the partnership.
b. Lee recognizes gain of $fill in the blank 1bee22fc9060fb6_1 on the transfer.
c. Brad's basis in his partnership interest is $fill in the blank 1027e1f55fc7fab_1.
d. Rick's basis in his partnership interest is $fill in the blank b7dd94f54f95fc0_1.
e. The LBR Partnership takes a basis of $fill in the blank 3c365f02302efd8_1 in the property transferred by Lee.
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