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Marlena Contributes Property Having a $30,000 FMV and a $27,000

question 79

Essay

Marlena contributes property having a $30,000 FMV and a $27,000 adjusted basis and also renders accounting services valued at $15,000 in exchange for a 30% interest in the capital and profits of the BBB partnership.LeBron contributes a building with a $100,000 FMV,an adjusted basis of $88,000,and subject to a mortgage of $80,000 for a 40% interest in the capital and profits of the BBB partnership.The partnership assumes the mortgage.Ty contributes cash of $60,000 for a 30% interest in the capital and profits of the BBB partnership.
a.What is each partner's respective basis in the partnership?
b.What are the current income tax consequences to each partner?
c.What is the partnership's basis in the assets transferred in by the partners?


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