Menu
support@businesspapershelp.com
+1(805) 568 7317

question rex contributed land to the partnership of rex tex and lex partnership in e 4291334

Question

Rex contributed land to the partnership of Rex, Tex, and Lex Partnership in exchange for a one-third interest in the Partnership. Rex’s adjusted basis in the land was $50,000 and its fair market value was $75,000. Rex’s Partnership capital account was credited with $75,000. Tex and Lex had each contributed $75,000 cash. Thus, each partner’s capital account was $75,000. What is Rex’s adjusted basis (outside basis) in his partnership interest?

a.             $75,000

b.             $50,000.                                                         

c.             $37,500

d.             cannot be determined from the facts stated

"Order a similar paper and get 15% discount on your first order with us
Use the following coupon
"GET15"

Order Now