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An equal partnership is formed by Rita and Gerry. Rita contributes cash of $10,000 and a...

An equal partnership is formed by Rita and Gerry. Rita contributes cash of $10,000 and a building with a fair market value of $150,000, adjusted basis of $55,000 and subject to a liability of $40,000. Gerry contributes cash of $100,000. What is the partnership's basis in the building contributed by Rita?

1.

$150,000
2.

$60,000
3.

$90,000
4.

$55,000
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Answer #1

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