Calculate the basis of norman partnership interest


In the current year, Bruce formed an equal partnership with Norman. Bruce contributed land with an adjusted basis of $50,000 and a fair market value of $60,000. Bruce also contributed $40,000 cash to the partnership. Norman contributed land with an adjusted basis of $15,000 and a fair market value of $80,000. The land contributed by Bruce was encumbered by $30,000 of nonrecourse debt (the partnership assumed this liability). The land contributed by Norman was encumbered by $10,000 of nonrecourse debt (the partnership assumed this liability). Assume the partners share the debt equally.

Immediately after the formation, calculate the basis of Norman's partnership interest.

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Accounting Basics: Calculate the basis of norman partnership interest
Reference No:- TGS096923

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