Answer:
Partnership XYZ
Item Amount
1. Partnership XYZ's recognized gain (loss) $130,000
2. Bob's taxable gain (income) $65,000
3. Bob's basis in the property $90,000
4. Bob's basis in the partnership $105,000
Explanation:
a) Data and Calculations:
Bob's partnership interest = 50%
Adjusted basis of land = $50,000
Fair market value (FMV) = $180,000
Bob's basis in the partnership at year end = $40,000
Item Amount
1. Partnership XYZ's recognized gain (loss) $130,000 ($180,000 - $50,000)
2. Bob's taxable gain (income) $65,000 ($130,000 * 50%)
3. Bob's basis in the property $90,000 ($180,000 * 50%)
4. Bob's basis in the partnership $105,000 ($65,000 + $40,000)
