John Contributes Land Having $110,000 FMV and a $90,000 Adjusted

question 7

Multiple Choice

John contributes land having $110,000 FMV and a $90,000 adjusted basis which is subject to a $60,000 mortgage in exchange for a one-third interest in the AJK Partnership.The partnership owes no other liabilities.After the contribution,Abby,John,and Kent share profits and losses equally and each has a one-third interest in the partnership capital.John's basis in the partnership interest is

• A)$50,000.
• B)$90,000.
• C)$110,000.
• D)$150,000.

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