Jerry contributed $8,000 for a 25% interest in a bookstore. He also contributed

Question

Jerry contributed $8,000 for a 25% interest in a bookstore. He also contributed a cash register, with a fair market value of $490 and adjusted basis of $350. The store had a profit of $60,000 at the end of the year. What is Jerry's partnership basis in the bookstore at the end of the year? A- $23,000   B- $23,300   C- $23,350   D- $23,490 Jerry contributed $8,000 for a 25% interest in a bookstore. He also contributed a cash register, with a fair market value of $490 and adjusted basis of $350. The store had a profit of $60,000 at the end of the year. What is Jerry's partnership basis in the bookstore at the end of the year?

Explanation / Answer

Partnership basis at the end of the year ;

So answer is d) $23490

Share in profit (60000*25%) 15000 Cash 8000 Fair market value of cash register 490 23490

Related Questions

Navigate

• Browse (All)
• Browse J
• Subjects

---