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Cosmo contributed land with a fair market value of $310,000 and a tax basis of $

ID: 2448316 • Letter: C

Question

Cosmo contributed land with a fair market value of $310,000 and a tax basis of $90,750 to the Y Mountain partnership in exchange for a 40 percent profits and capital interest in the partnership. The land is secured by $194,000 of nonrecourse debt. Other than this nonrecourse debt, Y Mountain partnership does not have any debt.

Cosmo contributed land with a fair market value of $310,000 and a tax basis of $90,750 to the Y Mountain partnership in exchange for a 40 percent profits and capital interest in the partnership. The land is secured by $194,000 of nonrecourse debt. Other than this nonrecourse debt, Y Mountain partnership does not have any debt.

Explanation / Answer

ANSWER:    

15.77 ± 46.785 = (-31.015, 62.555). Since the range includes 0, there does not appear to be a significant difference between the means of the two groups.