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?
Building $\quad$ Inventory
a. $\$ 80,000 \quad \$ 85,000$
b. $\$ 80,000 \quad \$ 80,000$
c. $\$ 100,000 \quad \$ 85,000$
d. $\$ 100,000 \quad \$ 80,000$

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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?
Building $\quad$ Inventory
a. $\$ 80,000 \quad \$ 85,000$
b. $\$ 80,000 \quad \$ 80,000$
c. $\$ 100,000 \quad \$ 85,000$
d. $\$ 100,000 \quad \$ 80,000$

Dewey and Louie Agree to Combine Their Sole Proprietorships into One