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9a.Harry and Sally formed the Evergreen partnership by contributing the following assets in exchange for a 50 percent capital and profits interest in the partnership:   Basis Fair Market Value Harry:     Cash $ 30,000 $ 30,000 Land 100,000 120,000 Totals $ 130,000 $ 150,000 Sally:     Equipment used in a business 200,000 150,000 Totals $ 200,000 $ 150,000 How much gain or loss will Sally recognize on the contribution?

9a.Harry and Sally formed the Evergreen partnership by contributing the following assets in exchange for a 50 percent capital and profits interest in the partnership:   Basis Fair Market Value Harry:     Cash $ 30,000 $ 30,000 Land 100,000 120,000 Totals $ 130,000 $ 150,000 Sally:     Equipment used in a business 200,000 150,000 Totals $ 200,000 $ 150,000 How much gain or loss will Sally recognize on the contribution?

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter15: Partnership Accounting
Section: Chapter Questions
Problem 11MC: Thandie and Marco are partners with capital balances of $60,000. They share profits and losses at...
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9a.Harry and Sally formed the Evergreen partnership by contributing the following assets in exchange for a 50 percent capital and profits interest in the partnership:

 

Basis

Fair Market Value

Harry:

 

 

Cash

$ 30,000

$ 30,000

Land

100,000

120,000

Totals

$ 130,000

$ 150,000

Sally:

 

 

Equipment used in a business

200,000

150,000

Totals

$ 200,000

$ 150,000

How much gain or loss will Sally recognize on the contribution?

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