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  3. susan obtained a 50% interest in a partnership tha

Susan obtained a 50% interest in a partnership that is a daycare center. She contributed...

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Accounting

Susan obtained a 50% interest in a partnership that is a daycare center. She contributed $20,000 in cash. She also contributed some playground equipment with a fair market value of $25,000 and an adjusted basis of $20,000. Neither Susan nor the partnership recognized any gain when the property was contributed. As a result of this contribution, Susan's tax capital account and book capital account balances increase by:
Tax account, $20,000; book account, $20,000.
Tax account, $20,000; book account, $25,000.
Tax account, $40,000; book account, $40,000.
Tax account, $40,000; book account, $45,000.

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