How much gain must B recognize

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Reference no: EM132769458

Questions - FACTS: A and B decide to form a partnership, Part. Z. A contributes $1000 in cash. B contributes Asset #1 with a value of $1000, and an adjusted basis of $250. B has a two-year holding period in Asset #1. In return for their capital contributions, each of A and B received partnership interests equal in value to their respective equity in Part. Z.

Required -

1. How much gain must B recognize, if any?

2. What is B's outside basis in his partnership interest in Part. Z?

3. What is B's capital account balance in Part: Z after the contribution?

4. What is A's capital account balance in Part. Z after the contribution?

5. What is Part. Z's inside basis in Asset #1?

6. What is Part. Z's holding period in Asset #1?

Reference no: EM132769458

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