Question :
1.) Bill and Barbara formed an equal partnership, B&B, a common partnership, on January 1, 2012. Barbara contributed $200,000 in exchange for her one-half interest. Bill contributed land worth $300,000 that had an adjusted basis to him of $50,000 and that was subject to a liability of $100,000 in exchange for his one-half interest. Which of the subsequent statements is accurate with respect to this transaction?
a. None of Barbara, Bill, or B&B recognized any gain or loss.
b. Bill recognized gain of $50,000 , but Barbara and B&B did not identify any gain or loss.
c. B&B recognized gain or $100,000 , but Barbara and Bill did not identify any gain or loss.
d. Bill and B&B each recognized $50,000 of gain, but Barbara did not identify any gain or loss.
2.) Bill and Barbara formed an equal partnership, B&B, a general partnership, on January 1, 2012. Barbara contributed $200,000 in exchange for her one-half interest. Bill contributed land worth $300,000 that had an adjusted basis to him of $50,000 and that was subject to a liability of $100,000 in exchange for his one-half interest. Which of the subsequent statements is accurate with respect to this transaction?
a. Bill's adjusted basis in his partnership interest after the transaction is $50,000.
b. Bill's adjusted basis in his partnership interest after the transaction is $100,000.
c. Bill's adjusted basis in his partnership interest after the transaction is 0.
d. Bill's adjusted basis in his partnership interest after the transaction is $200,000.
3.) Bill and Barbara formed an equal partnership, B&B, a general partnership, on 1st January, 2012. Barbara contributed $200,000 in exchange for her one-half interest. Bill contributed land worth $300,000 that had an adjusted basis to him of $50,000 and that was subject to a liability of $100,000 in exchange for his one-half interest. Which of the subsequent statements is accurate with respect to this transaction?
a. Barbara's adjusted basis in her partnership interest after the transaction is $0.
b. Barbara's adjusted basis in her partnership interest after the transaction is $150,000.
c. Barbara's adjusted basis in her partnership interest after the transaction is $200,000.
d. Barbara's adjusted basis in her partnership interest after the transaction is $250,000.