Three individuals form the ABC partnership and each contribute the following to form the partnership: Cash:...
Three individuals form the ABC partnership and each contribute the following to form the partnership:
- Cash: $35,000.00
- Future services to be rendered to the partnership worth: $350,000
- Real property with a basis of $300,000.00 and a fair market value of $350,000.00.
Tasks:
- What is each partner’s original basis in the partnership interest?
- What is the partnership’s basis in each partner’s contribution?
Homework Answers
a. Each partner’s original basis in the partnership interest is as follows:
- A - Cash: $35,000.00
- B - Future services to be rendered to the partnership worth: $350,000
- C - Real property: $300,000
b. Partnership's basis in each partner’s contribution:
- A - Cash: $35,000.00
- B - Future services to be rendered to the partnership worth: $350,000
- C - Real property: $350,000
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