Formation of a Partnership and Treatment of Liabilities. Bonnie, Carlos, and Dale form the BCD...
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Formation of a Partnership and Treatment of Liabilities. Bonnie, Carlos, and Dale form the BCD Partnership as equal partners. Bonnie contributes land and a building having a $ adjusted basis and a $ FMV that is subject to a $ mortgage assumed by the partnership. The land and the building originally cost $ with $ allocated to the building and $ allocated to the land. Bonnie had claimed $ of straightline depreciation on the building. Carlos contributes cash of $ and Dale contributes land a capital asset having a $ adjusted basis and a $ FMV All assets have been held for more than one year. Assume the partners have an equal economic risk of loss. a What is the amount of Bonnies recognized gain or loss on the transfer? b What is Bonnies basis in her partnership interest? c What is Carloss basis in his partnership interest? d What is the amount of Dales recognized gain or loss on the transfer? e What is Dales basis in his partnership interest? What is the partnerships basis for each of the contributed properties?
Formation of a Partnership and Treatment of Liabilities. Bonnie, Carlos, and Dale form the BCD Partnership as equal partners. Bonnie contributes land and a building having a $ adjusted basis and a $ FMV that is subject to a $ mortgage assumed by the partnership. The land and the building originally cost $ with $ allocated to the building and $ allocated to the land. Bonnie had claimed $ of straightline depreciation on the building. Carlos contributes cash of $ and Dale contributes land a capital asset having a $ adjusted basis and a $ FMV All assets have been held for more than one year. Assume the partners have an equal economic risk of loss.
a What is the amount of Bonnies recognized gain or loss on the transfer?
b What is Bonnies basis in her partnership interest?
c What is Carloss basis in his partnership interest?
d What is the amount of Dales recognized gain or loss on the transfer?
e What is Dales basis in his partnership interest?
What is the partnerships basis for each of the contributed properties?
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