= $10,000) to the partnership in exchange for her 50% interest, and Maya contributed $100,000 cash in exchange for her 50% partner
= $10,000) to the partnership in exchange for her 50% interest, and Maya contributed $100,000 cash in exchange for her 50% partner
Chapter14: Choice Of Business Entity—operations And Distributions
Section: Chapter Questions
Problem 25P
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Nhia and Maya are each 50% owners (capital &
Nhia contributed land (FMV = $100,000; AB = $10,000) to the partnership in exchange for her 50% interest, and Maya contributed $100,000 cash in exchange for her 50% partnership interest.
Assume that NM Partnership did not make any distribution to Nhia after they contributed the land.
Several years later, NM Partnership sold the land for $200,000. How much of the gain from the sale of the land is allocated to Nhia?
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