Question

Sharon contributed property to the newly formed QRST Partnership. The property had a $100,000 adjusted basis to Sharon and a $160,000 fair market value on the contribution date. The property was also encumbered by a $90,000 nonrecourse debt, which was transferred to the partnership on that date. Sharon is treated as a general partner. She is allocated 30% of QRST's profits, and 20% of QRST's losses. Sharon's basis in the partnership interest after the formation transaction is:
a.$127,000.
b.$28,000.
c.$118,000.
d.$37,000.
e.$88,000.

Answer 1

Answer

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Step-by-step explanation:

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