What are tax consequences of partnership formation to mike

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Reference no: EM131914560

Problem

Mike and Melisa form the equal MM Partnership. Mike contributes cash of $40,000 and land (fair market value of $100,000, adjusted basis of $120,000). And Melissa contributes the assets of her sole proprietorship (value of $140,000, adjusted basis of $115,000). What are the tax consequences of the partnership formation to mike, Melissa and MM Partnership?

Reference no: EM131914560

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