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AB. and Cag0e to form a partnership A contributes property worth $160,000 with an adjusted basis of $120,000 8 contributes $180,000 cash. C will manago the business and wil recelved an equal 1/3 capital intorest in the partnerstip Assume no discounts for lack of control and marketablity Assume that the type of CS services ace deductible byY the partnership (do not require capitalizing). What is the amount of C's capital account in thn yoar the inferost is granted assuming no other activity in the year that Creceives the interest? O$120,000 O180 000 $60.000

AB. and Cag0e to form a partnership A contributes property worth $160,000 with an adjusted basis of $120,000 8 contributes $180,000 cash. C will manago the business and wil recelved an equal 1/3 capital intorest in the partnerstip Assume no discounts for lack of control and marketablity Assume that the type of CS services ace deductible byY the partnership (do not require capitalizing). What is the amount of C's capital account in thn yoar the inferost is granted assuming no other activity in the year that Creceives the interest? O$120,000 O180 000 $60.000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A B. and C agree to form a partnorship. A contributes property worth $180,000 with an adjusted basis of $120 000 8 contributes $180,000 cash. Cwill manage the business and will recelved an equal 1/3 capital intorest in the partnorstip Assume no discounts for lack of control and marketablity Assume that the type of C services ace deductible byY N partnership (do not require capitalizing), What is the amount of C's captal account In the year the nerest is.granted assuming no other activity in the year that C eceves the intorest? 0.3130.000 O60.000
Transcribed Image Text:A B. and C agree to form a partnorship. A contributes property worth $180,000 with an adjusted basis of $120 000 8 contributes $180,000 cash. Cwill manage the business and will recelved an equal 1/3 capital intorest in the partnorstip Assume no discounts for lack of control and marketablity Assume that the type of C services ace deductible byY N partnership (do not require capitalizing), What is the amount of C's captal account In the year the nerest is.granted assuming no other activity in the year that C eceves the intorest? 0.3130.000 O60.000
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