A and B formed the equal AB Partnership on January 1 of the current year. A contributed $100,000 of cash and land with a fair market value of $112,500 and an adjusted basis of $93,750. B contributed equipment with a fair market value of $212,500 and an adjusted basis of $25,000. B had used the equipment in his sole proprietorship.
A and B formed the equal AB Partnership on January 1 of the current year. A contributed $100,000 of cash and land with a fair market value of $112,500 and an adjusted basis of $93,750. B contributed equipment with a fair market value of $212,500 and an adjusted basis of $25,000. B had used the equipment in his sole proprietorship.
Chapter10: Partnerships: Formation, Operation, And Basis
Section: Chapter Questions
Problem 32P
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A and B formed the equal AB
cash and land with a fair market value of $112,500 and an adjusted basis of $93,750. B contributed
equipment with a fair market value of $212,500 and an adjusted basis of $25,000. B had used the
equipment in his sole proprietorship.
Compute the following:
B’s gain recognized__________________________
AB’s gain recognized__________________________
A’s basis in his partnership interest__________________________
B’s basis in his partnership interest__________________________
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