Torrie and Laura form a partnership in which they are equal partners. Torrie contributes $100,000 cash. Laura contributes $40,000 cash and a painting worth $60,000. Laura purchased the painting three years ago for $45,000. years the partnership sells the painting for $80,000.
a. What is the partnership's basis in the painting?
b. When the painting is sold, how much gain is allocated to each partner?

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The Answer of Torrie and Laura form a partnership in which they are equal partners. Torrie contributes $100,000 cash. Laura contributes $40,000 cash and a painting worth $60,000. Laura purchased the painting three years ago for $45,000. years the partnership sells the painting for $80,000.
a. What is the partnership's basis in the painting?
b. When the painting is sold, how much gain is allocated to each partner?

Torrie and Laura Form a Partnership in Which They Are