Kevin,Chuck,and Greg Contributed Assets to Form the Equal KCG Partnership

question 135

Multiple Choice

Kevin,Chuck,and Greg contributed assets to form the equal KCG Partnership.Kevin contributed cash of $50,000 and land with a basis of $80,000 (fair market value of $50,000) .Chuck contributed cash of $30,000 and land with a basis of $40,000 (fair market value of $70,000) .Greg contributed cash of $60,000 and a fully depreciated property ($0 basis) valued at $40,000.Which of the following tax treatments is not correct?

• A)Kevin's basis in his partnership interest is $130,000.
• B)Chuck's basis in his partnership interest is $100,000.
• C)Greg's basis in his partnership interest is $60,000.
• D)KCG has a basis of $80,000,$40,000,and $0 in the land and property (excluding cash)contributed by Kevin,Chuck,and Greg,respectively.
• E)All of these statement are correct.

---

Definitions:

Webinar

A seminar or presentation that is transmitted over the web, allowing participants to join remotely.

Personal

Relating to or concerning an individual person, private life, or specific individual interests.

Local

Pertaining to data or resources that are stored or processed on the user's own computer or network, as opposed to remote or cloud-based services.

Metropolitan

Relating to a large city or densely populated urban area.