The partnership assumes jennifers liability of 20000 as


Question - Jennifer contributes an asset to a partnership in exchange for a partnership interest of 25 percent. The adjusted basis of the asset she contributes is $50,000 with a fair market value of $200,000. The partnership assumes Jennifer's liability of $20,000 as part of the transaction. Assume no other partnership liabilities. What is Jennifer's outside basis?

A. $35,000

B. $30,000

C. $50,000

D. $200,000

E. None of the above

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Accounting Basics: The partnership assumes jennifers liability of 20000 as
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