The partnership basis in the computer system

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Reference no: EM132000323

1. Neckole owns 50% interest in partnership J&K. She contributes a computer system eith FMV of $15,000 and an adjusted basis of $10,000 to the partnership. Which of the following is true?

a. the partnership basis in the computer system will be $10,000 and Nechole's outside basis will increase by $10,000

b. the partnership basis in the computer system will be $10,000 and Nechole's outside basis will increase by $15,000

c. the partnership basis in the computer system will be $15,000 and Nechole's outside basis will increase by $10,000

d. the partnership basis in the computer system will be $15,000 and Nechole's outside basis will increase by $15,000

2. Jaylan and Casper are equal partners in J&C Raccoon Hats. Jaylan contributed $12,000 and Casper contributed inventory with a FMV of $12,000 and an adjusted basis of $10,000. Which of the following is true?

a. Jaylan's basis in the partnership is $12,000 and Casper's is $10,000

b. Jaylan and Casper each have a basis in the partnership of $12,000

c. Jaylan will have a larger share of the profits than Casper

d. the first and third answers are both correct

Reference no: EM132000323

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