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Kathy Purchases a One-Third Interest in the KDP Partnership from Paul

question 68

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Kathy purchases a one-third interest in the KDP Partnership from Paul for $60,000.Just prior to the sale,Paul's outside and inside bases in KDP are $48,000.KDP's balance sheet includes the following: Kathy purchases a one-third interest in the KDP Partnership from Paul for $60,000.Just prior to the sale,Paul's outside and inside bases in KDP are $48,000.KDP's balance sheet includes the following: If KDP has a §754 election in place,what is Kathy's special basis adjustment? A) $0. B) $36,000. C) $12,000. D) None of the choices are correct. Kathy purchases a one-third interest in the KDP Partnership from Paul for $60,000.Just prior to the sale,Paul's outside and inside bases in KDP are $48,000.KDP's balance sheet includes the following: If KDP has a §754 election in place,what is Kathy's special basis adjustment? A) $0. B) $36,000. C) $12,000. D) None of the choices are correct. If KDP has a §754 election in place,what is Kathy's special basis adjustment?

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