Dewey and Louie agree to combine their sole proprietorships into one business. They will be equal partners in the Dewlou Diner. Dewey will contribute a building worth $100,000 adjusted basis of $80,000), and $10,000 in cash. Louie will contribute inventory worth $80,000 adjusted basis of $85,000) and $30,000 cash. What is Dewlou's basis in the assets?

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The Answer of Dewey and Louie agree to combine their sole proprietorships into one business. They will be equal partners in the Dewlou Diner. Dewey will contribute a building worth $100,000 adjusted basis of $80,000), and $10,000 in cash. Louie will contribute inventory worth $80,000 adjusted basis of $85,000) and $30,000 cash. What is Dewlou's basis in the assets?

Dewey and Louie Agree to Combine Their Sole Proprietorships into One