Question - Partner D is adamant that computers are more interesting than partnerships and decides he/she must bail out. To the delight of D a White Knight, Mr. F, agrees to buy his interest for the fair market value of $61,500. The balance sheet immediately before the sale of D's interest to F is as follows:
Balance Sheet
Inside Basis FMV
Cash $ 50,000 $ 50,000
Asset 1 7,500 1,000
Asset 2 12,000 2,000
Asset 3 20,000 30,000
Asset 4 40,000 60,000
Total assets $ 129,500 $ 143,000
Liabilities $ 20,000 $ 20,000
Capital -
A (10%) 10,950 12,300
E (10%) 10,950 12,300
C (30%) 32,850 36,900
D (50%) 54,750 61,500
Total liabilities and capital $129,500 $ 143,000
What are the bases of the assets to the new partnership?