Kevin, Chuck, and Greg contributed assets to form the equal KCG Partnership. Kev
ID: 2565323 • Letter: K
Question
Kevin, Chuck, and Greg contributed assets to form the equal KCG Partnership. Kevin contributed cash of $50,000 and land with a basis of $80,000 (fair market value of $50,000). Chuck contributed cash of $30,000 and land with a basis of $40,000 (fair market value of $70,000). Greg contributed cash of $60,000 and a fully depreciated property ($0 basis) valued at $40,000. Which of the following tax treatments is not correct?
a.
Kevin’s basis in his partnership interest is $130,000.
b.
Chuck’s basis in his partnership interest is $100,000.
c.
Greg’s basis in his partnership interest is $60,000.
d.
KCG has a basis of $80,000, $40,000, and $0 in the land and property (excluding cash) contributed by Kevin, Chuck, and Greg, respectively.
e.
All of these statement are correct.
a.
Kevin’s basis in his partnership interest is $130,000.
b.
Chuck’s basis in his partnership interest is $100,000.
c.
Greg’s basis in his partnership interest is $60,000.
d.
KCG has a basis of $80,000, $40,000, and $0 in the land and property (excluding cash) contributed by Kevin, Chuck, and Greg, respectively.
e.
All of these statement are correct.
Explanation / Answer
Chuck’s basis in his partnership interest is $70000(30000+40000) Option B should be selected
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.