Solution-What amount of gain do each of the partners

What amount of gain do each of the partners recognize

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Question - Dennis, Suzy, and Katherine form a partnership. Dennis and Suzy give equipment and a building, respectively. Katherine agrees to perform all of the accounting and office work in exchange for a 10% interest.

	FMV	Basis	Partnership %
Dennis's equipment	$52,500	$10,500	45%
Suzy's building	$52,500	$42,000	45%
Katherine's services	$0	$0	10%

Required -

-What amount of gain, if any, do each of the partners recognize?

-What is the basis for each partner in his or her partnership interest?

-What is the basis to the partnership of each asset?

Reference no: EM132913125

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What amount of gain do each of the partners recognize

Reference no: EM132913125

Reference no: EM132913125

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