Answer:
The correct answer is $40,300, $40,300 and $22,900
Explanation:
According to the scenario, the given data are as follows:
Harry contributed = $40,300
Hermione contributed = $40,300
Ron contributed land value = $98,000
Basis of land = $80,600
Mortgage on land = $57,700
So, we can calculate the tax basis for each by using following method:
Tax basis of Harry = Harry contributed cash
Tax basis of Harry = $40,300
Tax basis of Hermione = Hermione contributed cash
Tax basis of Hermione = $40,300
Tax basis of Ron = Basis of land - Mortgage on land
= $80,600 - $57,700
= $22,900
