Nancy contributed property to the newly formed EB Partnership. The property had a $100,000 adjusted basis to Nancy and a $160,000 fair market value on the contribution date. The property was also encumbered by a $90,000 nonrecourse debt, which was transferred to the partnership on that date. Nancy is treated as a general partner. She is allocated 30% of EB's profits and 20% of EB's losses. Nancy's basis in the partnership interest after the formation transaction is:
Nancy contributed property to the newly formed EB Partnership. The property had a $100,000 adjusted basis to Nancy and a $160,000 fair market value on the contribution date. The property was also encumbered by a $90,000 nonrecourse debt, which was transferred to the partnership on that date. Nancy is treated as a general partner. She is allocated 30% of EB's profits and 20% of EB's losses. Nancy's basis in the partnership interest after the formation transaction is:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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5. Nancy contributed property to the newly formed EB Partnership . The property had a $100,000 adjusted basis to Nancy and a $160,000 fair market value on the contribution date. The property was also encumbered by a $90,000 nonrecourse debt, which was transferred to the partnership on that date. Nancy is treated as a general partner. She is allocated 30% of EB's profits and 20% of EB's losses. Nancy's basis in the partnership interest after the formation transaction is:
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