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T transfers $60000 for 1/3 interest inLMN partnership as a limited partner. Duri

ID: 2618307 • Letter: T

Question

T transfers $60000 for 1/3 interest inLMN partnership as a limited partner. During the period Ls share of the partnership income is $120000 and L has withdrawn $75000. The partnership has recourse liabilities of $48000. Using this information, what is Ls basis in the partnership assuming that L has no obligation to contribute additional funds? A $60000 B$89000 C $105000 D $121000 T transfers $60000 for 1/3 interest inLMN partnership as a limited partner. During the period Ls share of the partnership income is $120000 and L has withdrawn $75000. The partnership has recourse liabilities of $48000. Using this information, what is Ls basis in the partnership assuming that L has no obligation to contribute additional funds? A $60000 B$89000 C $105000 D $121000 A $60000 B$89000 C $105000 D $121000

Explanation / Answer

Answer is

Option C. $105,000

EXPLANATION

L basis 60,000

L share of income 120,000

Less L withdrawn ( 75,000)

L basis in partnership 105,000