Reference no: EM133258382

Alex and Betty have agreed to form a cash-basis general partnership

As of January 1, 20X4,

Alex contributed $175,000 cash and an apartment complex valued at $2,578,000. Alex purchased the complex on April 12, 20X1 for $1,850,000 and has been operating theproperty as a sole proprietorship. The property is subject to a recourse debt of $775,000 that is assumed by the partnership.

Betty contributed $1,080,000 cash and an apartment complex valued at $2,600,000 and investment land valued at $425,000. Betty purchased the complex on November 7, 20X2 for $2,125,000 and has been operating the property as a sole proprietorship. The complex is subject to a nonrecourse debt of $2,127,000. The land was purchased on August 28, 20X2 for $325,000.

In November and December 20X3, Alex and Betty paid $17,000 for expenses that qualify as organizational costs. During this time, they also paid $13,000 for costs that meet the de?nition of start-up expenses. The $30,000 expense was paid for evenly by the two partners.

Chapter 2

Calculate Inside Basis of Apartment Buildings contributed (assume no depreciation deducted)

Calculate Inside Basis of Apartment Buildings contributed (assume depreciation deducted) - Use the Depr Tables provided

Calculate Outside Basis for Alex and Betty.