Bernard and Leon Formed a Partnership on January 1 with Cash

question 46

Multiple Choice

Bernard and Leon formed a partnership on January 1 with cash contributions of $600,000 and $200,000,respectively.The partners agree to share profits and losses in the ratio of their initial capital contributions.The partnership immediately borrowed $800,000.What is Bernard's tax basis in his partnership interest?

• A)$1,200,000
• B)$600,000
• C)$800,000
• D)$1,400,000

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