Cosmo contributed land with a fair market value of $470,000 and a tax basis of $115,300 to the Y Mountain partnership in exchange for a 35 percent profits and capital interest in the partnership. The land is secured by $145,000 of nonrecourse debt. Other than this nonrecourse debt, Y Mountain partnership does not have any debt. (Leave no answer blank. Enter zero if applicable.) a. How much gain will Cosmo recognize from the contribution? Gain recognized
Cosmo contributed land with a fair market value of $470,000 and a tax basis of $115,300 to the Y Mountain partnership in exchange for a 35 percent profits and capital interest in the partnership. The land is secured by $145,000 of nonrecourse debt. Other than this nonrecourse debt, Y Mountain partnership does not have any debt. (Leave no answer blank. Enter zero if applicable.) a. How much gain will Cosmo recognize from the contribution? Gain recognized
Chapter11: Partnerships: Distributions, Transfer Of Interests, And Terminations
Section: Chapter Questions
Problem 15CE
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Cosmo contributed land with a fair market value of $470,000 and a tax basis of $115,300 to the Y Mountain
a. How much gain will Cosmo recognize from the contribution?
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