Uniqua and Austin form a new partnership. Uniqua invests P240,000 in cash for her 60% interest in the capital and profits of the business. Austin contributes land that has an original cost of P40,000 and a fair market value of P70,000, and a building that has a tax basis of P50,000 and a fair market value of P90,000. The building is subject to a P40,000 mortgage that the partnership will assume. What amount of cash should Austin contribute?
Uniqua and Austin form a new partnership. Uniqua invests P240,000 in cash for her 60% interest in the capital and profits of the business. Austin contributes land that has an original cost of P40,000 and a fair market value of P70,000, and a building that has a tax basis of P50,000 and a fair market value of P90,000. The building is subject to a P40,000 mortgage that the partnership will assume. What amount of cash should Austin contribute?
Chapter11: Partnerships: Distributions, Transfer Of Interests, And Terminations
Section: Chapter Questions
Problem 15CE
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Uniqua and Austin form a new partnership. Uniqua invests P240,000 in cash for her 60% interest in the capital and profits of the business. Austin contributes land that has an original cost of P40,000 and a fair market value of P70,000, and a building that has a tax basis of P50,000 and a fair market value of P90,000. The building is subject to a P40,000 mortgage that the partnership will assume. What amount of cash should Austin contribute?
note: ligible
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