Reference no: EM131800172

Question - Partner D is adamant that computers are more interesting than partnerships and decides he/she must bail out.  To the delight of D a White Knight, Mr. F, agrees to buy his interest for the fair market value of $61,500.  The balance sheet immediately before the sale of D's interest to F is as follows:

Balance Sheet

                                                Inside Basis                           FMV

Cash                                         $ 50,000                                $ 50,000

Asset 1                                      7,500                                    1,000

Asset 2                                      12,000                                  2,000

Asset 3                                      20,000                                  30,000

Asset 4                                      40,000                                  60,000

Total assets                                $ 129,500                             $ 143,000

Liabilities                                    $ 20,000                               $ 20,000

Capital -

A (10%)                                     10,950                                  12,300

E (10%)                                     10,950                                  12,300

C (30%)                                     32,850                                  36,900

D (50%)                                     54,750                                  61,500

Total liabilities and capital             $129,500                              $ 143,000

What are the bases of the assets to the new partnership?