Patrick Purchases a One-Third Interest in the PPP Partnership for $600,000

question 82

Multiple Choice

Patrick purchases a one-third interest in the PPP partnership for $600,000. The partnership has assets with a value of $1,500,000. PPP has a 754 election in effect. What is the amount of the basis adjustment?

• A)$0
• B)$300,000 increase in the basis of partnership assets
• C)$100,000 increase in Patrick's basis in the partnership assets
• D)$100,000 increase in Patrick's share of the basis in the partnership assets

---

Definitions:

Revised FRCP

The Federal Rules of Civil Procedure which have been updated or amended to reflect current legal practices and standards.

Initial Disclosures

The mandatory sharing of basic evidence and information between parties in a legal case, usually at the early stages of litigation.

Drafting Interrogatories

The process of creating written questions that one party in a lawsuit sends to another party, which must be answered as part of the discovery process.

Drafting Requests

The process of writing formal documents or demands for specific actions to be taken, usually within a legal or professional context.