George transferred land having a $170,000 FMV and a $60,000 adjusted basis,which is subject to a $150,000 mortgage in exchange for a one-third interest in the GEF Partnership.The partnership owes no other liabilities.George,Elena,and Franz share profits and losses equally and each has a one-third interest in partnership capital.The basis to the partnership of the land transferred by George is
A)$20,000.
B)$60,000.
C)$110,000.
D)$170,000.

Question

Quizplus · Accepted Answer

The basis to the partnership of the land transferred by George is the adjusted basis of the land, which is $60,000. The mortgage does not affect the basis to the partnership.

George Transferred Land Having a $170,000 FMV and a $60,000