Question

Jaylan and Casper are equal partners in J&C Raccoon Hats. Jaylan contributed $12,000 and Casper contributed Inventory with a FMV of $12,000 and an adjusted basis of $10,000. Which of the following is true? Jaylan's basis in the partnership is $12.000 and Casper's is $10,000 Jaylan and Casper each have a basis in the partnership of $12,000

Answer 1

Part 1

Answer is option A

A. Jaylan's basis in the partnership is $12,000 and Casper's is $10,000

The partner’s adjusted basis is equal to the net cash or adjusted basis of the property contributed by the partner.

Part 17

Answer is option A

A. Partnership’s basis in computer system - $10000, Nichole’s outside basis – increases by $10000

Partnership’s basis is the inside basis and it indicates the basis in the assets it owns. Outside basis indicates the partner’s basis in the partnership.