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  3. on june 1 of the current tax year, elisha and ezra

On June 1 of the current tax year, Elisha and Ezra (who are equal partners)...

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Accounting

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On June 1 of the current tax year, Elisha and Ezra (who are equal partners) contribute property to form the Double E General Partnership. Elisha contributes cash of $200,000. Erra contributes a building and land with an adjusted basis and fair market value of $340,000, subject to a liability of $140,000. The partnership borrows $20,000 to finance construction of a parking lot in front of the building. At the end of the first year (December 31 ), the acerual basis partnership owes $8,200 in trade accounts payable to various creditors. The partnership reported net income of $30,000 for the year that the partners share equally. Assume that Elisha and Erra share equally in partnership liabilities. How much is Elisha's basis in the partnership interest on December 31 ? Era's? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (MaC)

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