In the Current Year, Derek Formed an Equal Partnership with Cody

question 12

Essay

In the current year, Derek formed an equal partnership with Cody. Derek contributed land with an adjusted basis of $110,000 and a fair market value of $200,000. Derek also contributed $50,000 cash to the partnership. Cody contributed land with an adjusted basis of $80,000 and a fair market value of $230,000. The land contributed by Derek was encumbered by a $60,000 nonrecourse debt. The land contributed by Cody was encumbered by $40,000 of nonrecourse debt. Assume the partners share debt equally. Immediately after the formation, what is the basis of Cody's partnership interest?

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Definitions:

Predicted Values

In statistics, these are the estimated outcomes based on a regression model or other predictive model.

Coefficient of Determination

A statistical measure represented by R² that assesses the extent of variance in a dependent variable that is predictable from the independent variable(s).

Regression Model

A statistical framework that predicts the connection between a dependent variable and one or several independent variables.

Predictors

Variables used in statistical models to forecast outcomes or trends.