Nicole owns a 50% interest in partnershp J&K. She contributes a computer system with a...
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Accounting
Nicole owns a 50% interest in partnershp J&K. She contributes a computer system with a FMV of $15,000 and an adjusted basis of $10,000 to the partnership. Which of the following are true?
(1) The partnership's basis in the computer system will be $10,000 and Nicole's outside basis will increase by $10,000.
(2) The partnership's basis in the computer system will be $10,000 and Nicole's outside basis will increase by $15,000.
(3) The partnership's basis in the computer system will be $15,000 and Nicole's outside basis will increase by $10,000.
(4) The partnership's basis in the computer system will be $15,000 and Nicole's outside basis will increase by $15,000.
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