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Karen is a 20% partner in Smith Partners. The other interests in the partnership are owned by Karen's parents and siblings. At the end of the year, the partnership had the following balance sheets (basis and FMV):

Karen is a 20% partner in Smith Partners. The other interests in the partnership are owned by Karen's parents and siblings. At the end of the year, the partnership had the following balance sheets (basis and FMV):

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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Karen is a 20% partner in Smith Partners. The other interests in the partnership are owned by Karen's parents and siblings. At the end of the year, the partnership had the following balance sheets (basis and FMV): Basis Buildings Land Totals FMV $100,000 $175,000 200,000 450,000 $300,000 $625,000 Capital, Karen $60,000 $125,000 Capital, Parents 150,000 306,000 Capital, Siblings 90,000 187,500 Totals $300,000 $625,000 At that time, Karen decided to give her interest in the partnership to her alma mater, State Tech. Assuming that none of the partnership's assets constitute ordinary income property, what will be the amount of Karen's charitable contributions deduction?
Transcribed Image Text:Karen is a 20% partner in Smith Partners. The other interests in the partnership are owned by Karen's parents and siblings. At the end of the year, the partnership had the following balance sheets (basis and FMV): Basis Buildings Land Totals FMV $100,000 $175,000 200,000 450,000 $300,000 $625,000 Capital, Karen $60,000 $125,000 Capital, Parents 150,000 306,000 Capital, Siblings 90,000 187,500 Totals $300,000 $625,000 At that time, Karen decided to give her interest in the partnership to her alma mater, State Tech. Assuming that none of the partnership's assets constitute ordinary income property, what will be the amount of Karen's charitable contributions deduction?
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