Nick and Rodrigo Form the NRC Partnership by Combining the Assets

question 85

Multiple Choice

Nick and Rodrigo form the NRC Partnership by combining the assets of their respective businesses. Nick contributes $10,000 and assets worth $90,000 (adjusted basis of $60,000) for a 1/3 interest. Rodrigo contributes $90,000 and assets worth $270,000 (adjusted basis of $150,000) for a 2/3 interest. NRC also assumes $60,000 of debt on Rodrigo's assets. What is Nick's basis in his partnership interest?

• A)$70,000
• B)$90,000
• C)$100,000
• D)$120,000
• E)$160,000

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