Question $17$

$4$ pts

ABC Partnership is taking on D as a new $25\%$ capital partner in return for her ongoing marketing services. None of the parties want any disputations with the IRS over the reporting of this transaction. What is the safest method they can use to determine the fair market value of D$\text{'}$s partnership interest?

Hire an outside appraiser to determine its value.

Take the fair market value of all the putreeship assets and multiple it by $25\%.$

Take the tax basis of alf the partnership assets reduced by the partnership liabilities multiplied by $25\%.$

Take the tax basis of all the partnerslip assets and multiple it by $25\%.$

Take the tair market value of all the partnership assets reduced by the partnership liabilities multiplied by $25\%.$