Julie Contributed Fully Depreciated ($0 Basis)property Valued at $20,000 to the JK

question 129

Multiple Choice

Julie contributed fully depreciated ($0 basis) property valued at $20,000 to the JK Partnership in exchange for a 50% interest in partnership capital and profits.During the first year of partnership operations,JK had net taxable income of $50,000.The partnership distributed $20,000 cash to Julie.Julie's adjusted basis (outside basis) for her partnership interest at year-end is:

• A)$0.
• B)$5,000.
• C)$25,000.
• D)$30,000.
• E)None of the above.

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