James and Sharon Form an Equal Partnership in the Current

question 8

Essay

James and Sharon form an equal partnership in the current year.No special allocation is provided for in the partnership agreement.During the year James contributes land having a $80,000 basis and a $100,000 FMV in exchange for the initial partnership interest.In addition,the partnership earns $80,000 of ordinary income while partnership liabilities increase from zero to $60,000 by the end of the tax year.Also,the partnership earns $10,000 of tax-exempt interest during the year and makes charitable contributions of $6,000.James withdraws $30,000 from the partnership.
What is James's basis at the end of the current year?

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The aspiration or drive to gain authority or control over individuals, resources, or situations.

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Individuals who initiate, manage, and assume the risks of a startup or new business venture to exploit market opportunities.