Determine the partnerships basis in the assets contributed

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Point 1: X, Y, and Z form XYZ Partnership by contributing as and property as follows: X contributes $40,000 cash for 20 percent interest. Y contributes property valued at $80,000 for a 40 percent interest . This property has a basis innY's hands of $5,000. For the remaining 40 percent interest, Z develops the partnership agreement and perform another services that are valued at $5,000. In addition, he contributed property with a fair market value of $100,000 with a $25,000 mortgage that the partnership guarantees. The property has a basis of $70,000 in Z's hands.

Question 1: Determine x, Y, and Z's bases in their partnership interests. Determine the partnership's basis in the assets contributed.

Reference no: EM132498558

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