Basis in the partnership interest


For a 20% interest in partnership capital, profits and losses, Kasi contributes a machine having a basis of $30,000 and a FMV of $40,000. The partnership also assumes a $24,000 recourse liability secured by the machine. The partnership has $6,000 in recourse liabilities immediately preceding Kasi's contributions. Partners share the economic risk of loss from recourse liabilities in the same way they share partnership losses. Kasi's basis in the partnership interest is:

a.$10,800

b.$12,000

c.$13,200

d.$30,000

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Basis in the partnership interest
Reference No:- TGS049629

Expected delivery within 24 Hours