What book basis will liz and john take in their partnership

Assignment Help Taxation

Reference no: EM133449138

Question: Liz and John formed the equal LJ Partnership on January 1 of the current year. Liz contributed $80,000 of cash and land with a fair market value of $90,000 and an adjusted basis of $75,000. John contributed equipment with a fair market value of $170,000 and an adjusted basis of $20,000. John had used the equipment in his sole proprietorship.

What § 704(b) book basis will Liz and John take in their partnership interests?

Reference no: EM133449138

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