On January 1 of the current year, Anna and Jason form an equalpartnership. Anna contributes $50,000 cash and a parcel of land(adjusted basis of $100,000; fair market value of $150,000) inexchange for her interest in the partnership. Jason contributesproperty (adjusted basis of $180,000; fair market value of$200,000) in exchange for his partnership interest. Which of thefollowing statements is true concerning the income tax results ofthis partnership formation?
A. Jason recognizes a $20,000 gain on his property transfer.
B. Jason has a $200,000 tax basis for his partnershipinterest.
C. Anna has a $150,000 tax basis for her partnershipinterest.
D. The partnership has a $150,000 adjusted basis in the landcontributed by Anna.
E. None of the statements is true.
On January 1 of the current year, Anna and Jason form an equalpartnership. Anna contributes $50,000 cash and a parcel of land(adjusted basis of $100,000; fair market value of $150,000) inexchange for her interest in the partnership. Jason contributesproperty (adjusted basis of $180,000; fair market value of$200,000) in exchange for his partnership interest. Which of thefollowing statements is true concerning the income tax results ofthis partnership formation?
A. Jason recognizes a $20,000 gain on his property transfer.
B. Jason has a $200,000 tax basis for his partnershipinterest.
C. Anna has a $150,000 tax basis for her partnershipinterest.
D. The partnership has a $150,000 adjusted basis in the landcontributed by Anna.
E. None of the statements is true.
Unlock all answers
