Question

Daniel acquires a 30 percent interest in the PPZ Partnership from Paolo, an existing partner, for $46,000 of cash. The PPZ Partnership has borrowed $17,000 of recourse liabilities as of the date Daniel bought the interest. What is Daniel's basis in his partnership interest?

Answer 1

Answer:

$51,100

Explanation:

Given:

Acquire interest = 30%

cash amount = $46,000

Borrowed amount = $17,000

Find:

Basis in partnership interest

Computation:

Basis in partnership interest = $46,000 + ($17,000 x 30%)

Basis in partnership interest = $51,100