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Belina and Harry Form the B&H Partnership in 2016

Question 135

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Belina and Harry form the B&H Partnership in 2016.Belina contributes $15,000 for a 25% interest in the partnership.Harry contributes a building worth $45,000 for a 75% interest in the partnership.During 2016,B&H reports an income of $12,000 from operations.Belina withdraws $6,000 and Harry withdraws $12,000 from the partnership.How much gross income will Belina and Harry report from their investment in B&H and what are their bases in the partnership at the end of 2016?

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A partnership is a conduit entity.Belina...

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