Cosmo contributed land exchange for a 25 percer
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Cosmo contributed land with a fair market value of $387,500 and a tax basis of $94,500 to the Y Mountain partnership in
exchange for a 25 percent profits and capital interest in the partnership. The land is secured by a $133,000 nonrecourse
liability. Other than this nonrecourse liability, Y Mountain partnership does not have any liability. (Leave no answer blank.
Enter zero if applicable.)
b. What is Cosmo's tax basis in his partnership interest?
Tax basis
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