Partner’s interest in a partnership is generally equal to:
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter14: Partnerships And Limited Liability Entities
Section: Chapter Questions
Problem 6BCRQ
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Question
Partner’s interest in a partnership is generally equal to:
a)The fair value of net assets at date of contribution.
b)The sum of the fair values of the assets the partner contributes to the firm, increased by any liabilities of other partners assumed and decreased by any personal liabilities that are assumed by other partners.
c)The sum of the bases of the individual assets the partner contributes to the firm decreased by the partner’s share of partnership liabilities.
d)The unamortized cost of the assets to the partner.
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how would the increase in liabilities of other partners assumed would contribute to the partner's interest?
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