Cosmo contributed land with a fair market value of $387,500 and a tax basis of $94,500 to the Y Mountain partnership inexchange for a 25 percent profits and capital interest in the partnership. The land is secured by a $133,000 nonrecourseliability. Other than this nonrecourse liability, Y Mountain partnership does not have any liability. (Leave no answer blank.Enter zero if applicable.)b. What is Cosmo's tax basis in his partnership interest?Tax basis

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Cosmo contributed land exchange for a 25 percer

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Cosmo contributed land with a fair market value of $387,500 and a tax basis of $94,500 to the Y Mountain partnership in
exchange for a 25 percent profits and capital interest in the partnership. The land is secured by a $133,000 nonrecourse
liability. Other than this nonrecourse liability, Y Mountain partnership does not have any liability. (Leave no answer blank.
Enter zero if applicable.)
b. What is Cosmo's tax basis in his partnership interest?
Tax basis

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