George Pays $10,000 for a 20% Interest in a General

question 81

Multiple Choice

George pays $10,000 for a 20% interest in a general partnership, which has recourse liabilities of $20,000. The partners share the economic risk of loss from recourse liabilities in the same way they share partnership losses. George's basis in his partnership interest is

• A)$10,000.
• B)$12,000.
• C)$14,000.
• D)$30,000.

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