Daniel Acquires a 30percent Interest in the PPZ Partnership from Paolo

question 103

Multiple Choice

Daniel acquires a 30percent interest in the PPZ Partnership from Paolo, an existing partner, for $39,000 of cash. The PPZ Partnership has borrowed $10,000 of recourse liabilities as of the date Daniel bought the interest. What is Daniel's basis in his partnership interest?

• A)$39,000.
• B)$42,000.
• C)$46,000.
• D)$49,000.

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