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Calculate the basis for each partner

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Reference no: EM132950724

Question - A Partnership has the following balance sheet items:

Basis FMV

Cash 100,000 100,000

Inventory 100,000 100,000

Equipment 300,000 650,000

Accumulated Depreciation (100,000) (100,000)

Total Assets 300,000 750,000

Recourse Debt 200,000 200,000

Nonrecourse Debt 20,000 20,000

Partner A, Capital 8,000 53,000

Partner B, Capital 8,000 53,000

Partner C, Capital 16,000 106,000

Partner D, Capital 48,000 318,000

Total 300,000 750,000

Partners A and B are limited partners and C and D are general. Profits/losses are allocated 10% to both A and B, 30% to C, and 50% to D.

Required - Calculate the basis for each partner.

Reference no: EM132950724

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