Bethany contributes a building to a partnership with a basis of $120,000 and a FMV of $200,000.Bethany's basis in her partnership interest would:

Question

Quizplus · Accepted Answer

When a partner contributes property to a partnership, their basis in their partnership interest increases by the value of the property contributed. In this case, Bethany's basis in her partnership interest would increase by the full FMV of the building she contributed, which is $200,000. Therefore, the correct answer is C, which indicates an increase in Bethany's basis by $120,000, the FMV of the building.

Bethany Contributes a Building to a Partnership with a Basis