For a 30% interest in partnership capital, profits, and losses, Carol contributes a machine with a basis of $40,000 and an FMV of $80,000 The parenhi $70,000 recourse liability on the machine. At the time of the contribution, the partnership had recourse liabilities of $10,000 Partners share the economic risk of los fam recourse liabilities in the same way they share partnership losses Following the contribution, Cal a capital loss due to the contribution of $6,000 and a zero basis in the partnership interest. O a capital gain due to the contribution of $6,000 and a zero basis in the partnership interest. O a $34,000 basis in the partnership interest and no gain or loss. O a $43,000 basis in the partnership interest and no gain or loss

For a 30% interest in partnership capital, profits, and losses, Carol contributes a machine with a basis of $40,000 and an FMV of $80,000 The parenhi $70,000 recourse liability on the machine. At the time of the contribution, the partnership had recourse liabilities of $10,000 Partners share the economic risk of los fam recourse liabilities in the same way they share partnership losses Following the contribution, Cal a capital loss due to the contribution of $6,000 and a zero basis in the partnership interest. O a capital gain due to the contribution of $6,000 and a zero basis in the partnership interest. O a $34,000 basis in the partnership interest and no gain or loss. O a $43,000 basis in the partnership interest and no gain or loss

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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