Raul contributes the following assets to a partnership for a 50% interest: What is Raul's basis in his partnership interest?

Question

Raul contributes the following assets to a partnership for a 50% interest:  What is Raul's basis in his partnership interest?

Quizplus · Accepted Answer

Raul's basis in his partnership interest is the total value of the assets contributed, which is $100,000. This is because the question states that Raul contributed the assets for a 50% interest in the partnership, so the total value of the partnership would be $200,000 ($100,000 contributed by Raul and $100,000 contributed by the other partner). Raul's basis in his partnership interest would be his share of that total value, which is $100,000.

Raul Contributes the Following Assets to a Partnership for a 50