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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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