Nick and Rodrigo form the NRC Partnership by combining the assets of their respective businesses. Nick contributes $10,000 and assets worth $90,000 (adjusted basis of $60,000) for a 1/3 interest. Rodrigo contributes $90,000 and assets worth $270,000 (adjusted basis of $150,000) for a 2/3 interest. NRC also assumes $60,000 of debt on Rodrigo's assets. What is Rodrigo's basis in his partnership interest?

Question

Quizplus · Accepted Answer

Rodrigo's basis in his partnership interest is calculated as the sum of the adjusted basis of the assets he contributed ($150,000) plus the cash he contributed ($90,000), minus the debt assumed by the partnership ($60,000). Therefore, his basis is $150,000 + $90,000 - $60,000 = $180,000.

Nick and Rodrigo Form the NRC Partnership by Combining the Assets