Question: Same problem. e. How much income does Nova recognize on the exchange? fill in the blank 1 of 1$ Kele and Nova wish to form

Same problem.

e. How much income does Nova recognize on the exchange? fill in the blank 1 of 1$

Kele and Nova wish to form the Sioux Partnership. Kele contributes property with an adjusted basis of $70,000, a fair market value of $200,000 that is subject to an $80,000 liability in exchange for 40 percent of Sioux. Nova receives a 60-percent interest in Sioux in exchange for providing services worth $10,000 and $170,000 cash.

If an amount is zero, enter "0".

Question Content Area

a. What amount of gain or loss must Kele recognize as a result of transferring the property to the partnership? fill in the blank 1 of 1$

b. What is Kele's basis in the partnership interest immediately after the formation of the partnership including allocation of partnership liabilities? fill in the blank 1 of 1$

What is the partnership's basis in the property contributed by Kele? fill in the blank 1 of 1$

What is Nova's basis (after considering Kele's liability assumed by the partnership) in the partnership interest immediately after the formation of the partnership including allocation of partnership liabilities? fill in the blank 1 of 1$

How much income does Nova recognize on the exchange? fill in the blank 1 of 1$

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