Self-Study Problem 10.2 John and Linda form the J&L; Partnership. John contribut

Question

Self-Study Problem 10.2 John and Linda form the J&L; Partnership. John contributes cash of $36,000 for a 40 percent interest in the partnership. Linda contributes equipment worth $54,000 with an adjusted basis of $17,500 for a 60 percent partnership interest. If an amount is none or zero, enter "O". 1. What is John's recognized gain or loss on the contribution? 2. What is John's basis in his partnership interest? 3. What is Linda's recognized gain or loss on the contribution? 4. What is Linda's basis in her partnership interest? 5. What is J&L; Partnership's basis in the equipment received from Linda?

Explanation / Answer

What is John’s recognized gain or loss on the contribution? None, on formation of partnership generally no gain or loss recognized. What is John’s basis in his partnership interest? $36,000 of cash contributed What is Linda’s recognized gain or loss on the contribution? None, on formation of partnership generally no gain or loss recognized. What is Linda’s basis in her partnership interest? $17,500 of adjusted basis in equipment What is J&L Partnership’s basis in the equipment received from Linda? $17,500, as the basis of contributing partner

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.