Asked by nicole gomez on Jun 25, 2024
Verified
Raul contributes the following assets to a partnership for a 50% interest: Raul’s Basis FIMV Building $75,000$125,00 Computer Equipment $72,000$30,000 Total $100,000$55,000\begin{array}{lccc} & \text { Raul's Basis } & & \text { FIMV } \\ \text { Building }& \$ 75,00 0 & & \$ 125,00 \\ \text { Computer Equipment }& \$ 72,000 & & \$ 30,000 \\ \text { Total }& \$ 100,00 0 & & \$ 55,000 \\\hline\end{array} Building Computer Equipment Total Raul’s Basis $75,000$72,000$100,000 FIMV $125,00$30,000$55,000 What is Raul's basis in his partnership interest?
A) $0.
B) $50,000.
C) $100,000.
D) $155,000.
Raul's Basis
This term is not a standard-tax related term or widely recognized financial concept. Likely refers to the basis of an investment or asset specific to an individual named Raul, which generally means the cost of the asset for tax purposes.
- Understand the computation and importance of a partner's external basis and the impact of contributions on it.
- Scrutinize the effects of partners contributing services and property on their stake in the partnership and the identification of income.
Verified Answer
PB
Priyanka BassiJun 29, 2024
Final Answer :
C
Explanation :
Raul's basis in his partnership interest is the value of the assets he contributes. The total value of the assets is $100,000, which means his basis in the partnership is also $100,000. Option A is incorrect because Raul has contributed assets to the partnership, so his basis cannot be $0. Option B is incorrect because the total value of the assets contributed is $100,000, not $50,000. Option D is incorrect because it is not provided how the value of $155,000 is determined.
Learning Objectives
- Understand the computation and importance of a partner's external basis and the impact of contributions on it.
- Scrutinize the effects of partners contributing services and property on their stake in the partnership and the identification of income.
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