Ruth formed an equal profit and loss Partnership with Joyce by contributing Land that had an Adjusted Basis of $50,000 and a Fair Market Value of $45,000. Ruth also contributed $35,000 in Cash to the Partnership. Joyce contributed Land that had an Adjusted Basis of $56,000 and a Fair Market Value of $85,000. The Land contributed by Ruth had a debt against it of $19,000 and the Land contributed by Joyce had a debt against it of $29,000. Assuming no other transactions, the basis of Ruth's Partnership Interest immediately after the Partnership formation was: O $104,500. O $100,000. $ 90,000. O$ 85,000.
Ruth formed an equal profit and loss Partnership with Joyce by contributing Land that had an Adjusted Basis of $50,000 and a Fair Market Value of $45,000. Ruth also contributed $35,000 in Cash to the Partnership. Joyce contributed Land that had an Adjusted Basis of $56,000 and a Fair Market Value of $85,000. The Land contributed by Ruth had a debt against it of $19,000 and the Land contributed by Joyce had a debt against it of $29,000. Assuming no other transactions, the basis of Ruth's Partnership Interest immediately after the Partnership formation was: O $104,500. O $100,000. $ 90,000. O$ 85,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Q 10.
Transcribed Image Text:Ruth formed an equal profit and loss Partnership with Joyce by contributing Land that had an Adjusted Basis of $50,000 and a Fair Market Value
of $45,000. Ruth also contributed $35,000 in Cash to the Partnership. Joyce contributed Land that had an Adjusted Basis of $56,000 and a Fair
Market Value of $85,000. The Land contributed by Ruth had a debt against it of $19,000 and the Land contributed by Joyce had a debt against it
of $29,000. Assuming no other transactions, the basis of Ruth's Partnership Interest immediately after the Partnership formation was:
O $104,500.
$100,000.
O$ 90,000.
$ 85,000.
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