Business, 18.08.2020 21:01, paolaviviana

For a 30% interest in partnership capital, profits, and losses, Carol contributes a machine with a basis of $40,000 and an FMV of $80,000. The partnership assumes a $70,000 recourse liability on the machine. At the time of the contribution, the partnership had recourse liabilities of $10,000. Partners share the economic risk of loss from recourse liabilities in the same way they share partnership losses. Following the contribution, Carol has:. a) a capital loss due to the contribution of $6,000 and a zero basis in the partnership interest.
b) a capital gain due to the contribution of $6,000 and a zero basis in the partnership interest.
c) a $34,000 basis in the partnership interest and no gain or loss.
d) a $43,000 basis in the partnership interest and no gain or loss.

Answers: 2

Show answers

Other questions on the subject: Business

Business, 21.06.2019 21:00, skifchaofficial01

Stephen barrett, md previous writing experience ?

Answers: 1

continue

Business, 22.06.2019 10:30, abigail251

Factors like the unemployment rate, the stock market, global trade, economic policy, and the economic situation of other countries have no influence on the financial status of individuals. ( t or f)

Answers: 1

continue

Business, 22.06.2019 20:00, adriannacomrosenbark

Modern firms increasingly rely on other firms to supply goods and services instead of doing these tasks themselves. this increased level of is leading to increased emphasis on management.

Answers: 2

continue

Business, 22.06.2019 20:30, absports

Identify the level of the literature hierarchy for u. s. gaap to which each item belongs

Answers: 1

continue

Do you know the correct answer?

For a 30% interest in partnership capital, profits, and losses, Carol contributes a machine with a b...