b. What is Michelle's basis in her partnership interest? What is Michelle's inside basis?
b. What is Michelle's basis in her partnership interest? What is Michelle's inside basis?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Michelle pays $183,000 cash for Brittany's one-third interest in the Westlake Partnership. Just prior to the sale, Brittany's
basis in Westlake is $96,300. Westlake reports the following balance sheet:
Таx Basis
FMV
Assets
$ 96,300
192,600
$ 288,900
$ 96,300
452,700
Cash
Land
Totals
$ 549,000
Liabilities and capital
Capital-Amy
Capital-Brittany
Сapital-Ben
$ 96,300
$ 96,300
$ 96,300
$ 288,900
Totals
(Leave no answer blank. Enter zero if applicable.)
b. What is Michelle's basis in her partnership interest? What is Michelle's inside basis?
Amount
Basis in partnership interest
Inside basis](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcf1b8093-2c1f-4bb7-be85-7f88fe82f438%2F1f4cd3f0-4215-4f31-b625-039ce39743db%2Flo9jowhj_processed.png&w=3840&q=75)
Transcribed Image Text:Michelle pays $183,000 cash for Brittany's one-third interest in the Westlake Partnership. Just prior to the sale, Brittany's
basis in Westlake is $96,300. Westlake reports the following balance sheet:
Таx Basis
FMV
Assets
$ 96,300
192,600
$ 288,900
$ 96,300
452,700
Cash
Land
Totals
$ 549,000
Liabilities and capital
Capital-Amy
Capital-Brittany
Сapital-Ben
$ 96,300
$ 96,300
$ 96,300
$ 288,900
Totals
(Leave no answer blank. Enter zero if applicable.)
b. What is Michelle's basis in her partnership interest? What is Michelle's inside basis?
Amount
Basis in partnership interest
Inside basis
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