Kim and Martina are equal owners of Roundball Company.They agree to admit Darcy as an equal owner.Darcy will contribute $10,000 in cash and property worth $40,000 (adjusted basis of $25,000)for a 1/3 interest in Roundball.How much gain (loss)will Darcy recognize and what is her basis in Roundball Company if Roundball is organized as a
a.Partnership

b.Corporation
a.Partnership
b.Corporation

Question

Kim and Martina are equal owners of Roundball Company.They agree to admit Darcy as an equal owner.Darcy will contribute $10,000 in cash and property worth $40,000 (adjusted basis of $25,000)for a 1/3 interest in Roundball.How much gain (loss)will Darcy recognize and what is her basis in Roundball Company if Roundball is organized as a
a.Partnership
 
b.Corporation
a.Partnership
b.Corporation

Quizplus · Accepted Answer

The Answer of Kim and Martina are equal owners of Roundball Company.They agree to admit Darcy as an equal owner.Darcy will contribute $10,000 in cash and property worth $40,000 (adjusted basis of $25,000)for a 1/3 interest in Roundball.How much gain (loss)will Darcy recognize and what is her basis in Roundball Company if Roundball is organized as a
a.Partnership
 
b.Corporation
a.Partnership
b.Corporation

Kim and Martina Are Equal Owners of Roundball Company