5. At the formation of the BD Partnership, Betty contributes land with a basis of $10,000...

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5. At the formation of the BD Partnership, Betty contributes land with a basis of $10,000 and an FMV of $30,000 and Dick cont

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Answer 1

Answer #1

Answer a. $10,000

FMV of Land = 30,000

Sales Value = 50,000

Profit of sale of Land =50,000-30,000=20,000

Profit share of Betty 50 Percent

Hence 20,000*50/100=10,000

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Answer 2

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