Reference no: EM131691095

Question - Bobby contributes property with a fair market value of $5,000 and a basis of $10,000. The property has a $5,000 nonrecourse mortgage attached to it. Bobby also contributes cash of $5,000. Bobby has a 50% profit and loss interest in the partnership. What is Bobby's tax and book basis in the partnership?

A. Tax Basis = 17,500, Book Basis = $10,000

B. Tax Basis = 20,000, Book Basis = $20,000

C. Tax Basis = 15,000, Book Basis = $17,500

D. Tax Basis = 17,500, Book Basis = $17,500

E. Need additional information