Carla,Marla,and Yancy Are Equal Partners in the CMY Partnership

question 58

Multiple Choice

Carla,Marla,and Yancy are equal partners in the CMY Partnership.The partnership balance sheet reads as follows on December 31 of the current year.

Partner Yancy has an adjusted basis of $35,000 for his partnership interest.If Yancy sells his entire partnership interest to new partner Paula for $60,000 cash,how much can the partnership step-up the basis of Paula's share of partnership assets under §§ 754 and 743(b) ?

• A)$17,000.
• B)$25,000.
• C)$35,000.
• D)$60,000.
• E)None of the above.

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