Nina and Sue form an equal partnership during the current year.Nina contributes cash of $130,000,and Sue contributes property (adjusted basis of $100,000,fair market value of $250,000)subject to a nonrecourse liability of $120,000.As a result of these transactions,Sue has a basis in her partnership interest of $50,000.

Question

Quizplus · Accepted Answer

Sue's initial basis in the partnership interest is a combination of her share of the partnership liabilities ($60,000) and her adjusted basis in the contributed property ($40,000). Therefore, Sue's initial basis is $100,000, which matches the stated basis in the question.

Nina and Sue Form an Equal Partnership During the Current