Carli Contributes Land to the Newly Formed CD Partnership in Exchange

question 14

Essay

Carli contributes land to the newly formed CD Partnership in exchange for a 30% interest. The land has an adjusted basis and fair market value of $300,000 and is subject to a liability of $100,000, which the partnership assumes. None of this liability is repaid at year-end. At the end of the year, the partnership has trade accounts payable of $20,000. Assume all liabilities are allocated proportionately to the partners. Total partnership income for the year is $400,000. What is Carli's basis in her partnership interest at the end of the year?

---

Definitions:

Transference

A patient’s tendency to respond to the analyst or therapist in ways that re-create her responses to major figures in her life.

Catharsis

A therapeutic process of releasing and thereby providing relief from strong or repressed emotions.

Unconscious Wishes

Desires that reside outside of conscious awareness, often influencing behavior and thought patterns.

Previously Unconscious

Refers to thoughts, feelings, desires, or memories that were not accessible to conscious awareness but have become conscious.