Stella Acquired a 25% Interest in the STUV Partnership by Contributing

question 73

Multiple Choice

Stella acquired a 25% interest in the STUV Partnership by contributing land having an adjusted basis of $32,000 and a fair market value of $100,000. The land was subject to a $48,000 mortgage, which was assumed by STUV. No other liabilities existed at the time of contribution. What is Stella's basis in her partnership interest?

• A)$0
• B)$32,000
• C)$52,000
• D)$64,000

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