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In each situation, assume the general partners share the economic risk of loss related to recourse liabilities according to their partnership interests. What is Zemin's basis in his partnership interest? a. Zemin designs the building the partnership will use for its offices. Zemin normally would charge a(n) $21,000 fee for a similar building design. Based on the other partner's contributions, the 40% interest has a FMV of $23,000. The partnership has no liabilities. b. Zemin contributes land with a(n) $6,000 basis and a(n) $16,000 FMV, a car (which he has used in his business since he purchased it) with a(n) $13,000 adjusted basis and a(n) $10,000 FMV, and $12,000 cash. The partnership has recourse liabilities of $90,000.

In each situation, assume the general partners share the economic risk of loss related to recourse liabilities according to their partnership interests. What is Zemin's basis in his partnership interest? a. Zemin designs the building the partnership will use for its offices. Zemin normally would charge a(n) $21,000 fee for a similar building design. Based on the other partner's contributions, the 40% interest has a FMV of $23,000. The partnership has no liabilities. b. Zemin contributes land with a(n) $6,000 basis and a(n) $16,000 FMV, a car (which he has used in his business since he purchased it) with a(n) $13,000 adjusted basis and a(n) $10,000 FMV, and $12,000 cash. The partnership has recourse liabilities of $90,000.

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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Zemin received a 40% general partnership interest in the OM Partnership in each of the independent situations below. Read the requirements. Requirement a. Zemin designs the building the partnership will use for its offices. Zemin normally would charge a(n) $21,000 fee for a similar building design. Based on the other partner's contributions, the 40% interest has a FMV of $23,000. The partnership has no liabilities. What is Zemin's basis in his 40% partnership interest? Zemin's basis in his partnership interest is Requirements In each situation, assume the general partners share the economic risk of loss related to recourse liabilities according to their partnership interests. What is Zemin's basis in his partnership interest? a. Zemin designs the building the partnership will use for its offices. Zemin normally would charge a(n) $21,000 fee for a similar building design. Based on the other partner's contributions, the 40% interest has a FMV of $23,000. The partnership has no liabilities. Zemin contributes land with a(n) $6,000 basis and a(n) $16,000 FMV, a car (which he has used in his business since he purchased it) with a(n) $13,000 adjusted basis and a(n) $10,000 FMV, and $12,000 cash. The partnership has recourse liabilities of $90,000. b.
Transcribed Image Text:Zemin received a 40% general partnership interest in the OM Partnership in each of the independent situations below. Read the requirements. Requirement a. Zemin designs the building the partnership will use for its offices. Zemin normally would charge a(n) $21,000 fee for a similar building design. Based on the other partner's contributions, the 40% interest has a FMV of $23,000. The partnership has no liabilities. What is Zemin's basis in his 40% partnership interest? Zemin's basis in his partnership interest is Requirements In each situation, assume the general partners share the economic risk of loss related to recourse liabilities according to their partnership interests. What is Zemin's basis in his partnership interest? a. Zemin designs the building the partnership will use for its offices. Zemin normally would charge a(n) $21,000 fee for a similar building design. Based on the other partner's contributions, the 40% interest has a FMV of $23,000. The partnership has no liabilities. Zemin contributes land with a(n) $6,000 basis and a(n) $16,000 FMV, a car (which he has used in his business since he purchased it) with a(n) $13,000 adjusted basis and a(n) $10,000 FMV, and $12,000 cash. The partnership has recourse liabilities of $90,000. b.
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