What is Reagan's basis after this transaction?
Chapter20: Corporations And Partnerships
Section: Chapter Questions
Problem 33CE
Related questions
Question
![Liam & Reagan Company is a partnership that has two partners, Liam and Reagan. At the beginning of the year,
Liam's basis in the partnership is $40,000 while Reagan's basis is $70,000. During the year, Liam transfers a
building to the partnership. The building has an adjusted basis to Liam of $350,000 and a fair market value of
$450,000. There is a recourse mortgage attached to the building of $250,000 that the partnership assumes.
Liam's profit-sharing ratio is 40% and his loss sharing ratio is 30%. Reagan's profit-sharing ratio is 60% and her
loss sharing ratio is 70%. What is Reagan's basis after this transaction?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7e416d2d-c85a-4106-bd27-eeaae1fdc168%2Fe1df6c2a-bda7-47a6-9852-dd03c8099df0%2Fkyu7x9_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Liam & Reagan Company is a partnership that has two partners, Liam and Reagan. At the beginning of the year,
Liam's basis in the partnership is $40,000 while Reagan's basis is $70,000. During the year, Liam transfers a
building to the partnership. The building has an adjusted basis to Liam of $350,000 and a fair market value of
$450,000. There is a recourse mortgage attached to the building of $250,000 that the partnership assumes.
Liam's profit-sharing ratio is 40% and his loss sharing ratio is 30%. Reagan's profit-sharing ratio is 60% and her
loss sharing ratio is 70%. What is Reagan's basis after this transaction?
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps with 3 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Individual Income Taxes](https://www.bartleby.com/isbn_cover_images/9780357109731/9780357109731_smallCoverImage.gif)
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
![Individual Income Taxes](https://www.bartleby.com/isbn_cover_images/9780357109731/9780357109731_smallCoverImage.gif)
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT