Zinc, LP was formed on August 1, 20X9. When the partnership was formed, Al contributed $10,000 in cash and inventory with an FMV and tax basis of $40,000. In addition, Bill contributed equipment with an FMV of $30,000 and adjusted basis of $25,000 along with accounts receivable with an FMV and tax basis of $20,000. Also, Chad contributed land with an FMV of $50,000 and tax basis of $35,000. Finally, Dave contributed a machine, secured by $35,000 of debt, with an FMV of $15,000 and a tax basis of $10,000. What is the total inside basis of all the assets contributed to Zinc, LP?
A)$140,000
B)$165,000
C)$175,000
D)$200,000

Question

Quizplus · Accepted Answer

The total inside basis of all the assets contributed to Zinc, LP is $140,000. This is calculated by adding up the tax basis of all the assets contributed: $40,000 + $25,000 + $35,000 + $10,000 = $140,000.

Zinc, LP Was Formed on August 1, 20X9