Answer:
Rita's basis in her partnership interest is $35000
Explanation:
given data
cash = $10,000
fair market value = $150,000
adjusted basis = $55,000
liability = $60,000
to find out
Rita's basis in her partnership interest
solution
we know both Rita and Gerry half of total liability
we get here 50% share on debt that is
50% share on debt = 50% × liability
50% share on debt = 0.50 × $60,000
50% share on debt = $30000
so basis on interest is here as
basis on interest = cash + adjusted basis - 50% share on debt
basis on interest = $10000 + $55000 - $30000
basis on interest = $35000
