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

question 36

Multiple Choice

Daniel acquires a 30percent interest in the PPZ Partnership from Paolo, an existing partner, for $49,000 of cash. The PPZ Partnership has borrowed $20,000 of recourse liabilities as of the date Daniel bought the interest. What is Daniel's basis in his partnership interest?

• A) $49,000.
• B) $55,000.
• C) $63,000.
• D) $69,000.