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Red Bush and Green Tree are equal partners in Arbor Partnership. Each partner has contributed capital of $60,000 to the partnership and this is also their adjusted cost base for the partnership interest. Blue Grass wants to join the partnership as an equal partner. Both Red Bush and Green Tree have capital losses and would like to generate a capital gain from the admission of Blue Grass. Which of the following alternatives will accomplish both objectives?
Blue Grass pays $20,000 directly to both of the original partners.
Blue Grass pays $30,000 directly to both of the original partners.
Blue Grass pays $40,000 directly to the partnership.
Blue Grass pays $60,000 directly to the partnership.
heathrow issues 2800000 of 8 percent 15-year bonds dated january 1 2011 that pays interest semiannually on 30th june
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