When Kevin and Marshall formed theequal KM LLC, the fair market values oftheir interests were each $100,000.Kevin contributed $60,000 cash,equipment with a basis of $0 and a fairmarket value of $10,000, and a smallparcel of land in which he had a basis of$50,000 and that was valued at $30,000. Marshall contributed a cashbasis account receivable that was valuedat $100,000 and in which his basis was$0. Kevin has a basis in his partnershipinterest of $110,000 and Marshall'sbasis is $0. A.) True B.) False

Answered: $0. Kevin has a basis in his…

Business

Accounting

$0. Kevin has a basis in his partnership interest of $110,000 and Marshall's basis is $0. A.) True B.) False

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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